Global air cargo demand rises 3.9pc in July

Geneva : Global air cargo demand increased 3.9 percent year over year in July, as stronger trade and manufacturing activity supported the sector despite rising fuel costs and geopolitical uncertainty, according to the International Air Transport Association (IATA).

Demand, measured in cargo ton-kilometers, rose 4.7 percent for international operations. Available cargo ton-kilometers, a measure of capacity, grew 1.7 percent globally and 1.8 percent internationally.

IATA Senior Vice President Sustainability and Chief Economist Marie Owens Thomsen said the market remained broadly positive, although higher fuel prices, trade tensions and geopolitical risks could affect future performance.

Global trade expanded 7.5 percent from a year earlier. Manufacturing activity remained supportive, with the global manufacturing output PMI at 52.7, while the new export orders index reached 50.0.

North American airlines recorded the strongest regional demand growth at 4.8 percent, followed by Europe at 4.4 percent. Asia-Pacific and Latin American and Caribbean carriers each posted 4.1 percent growth. Middle Eastern demand increased 1.7 percent, while African carriers recorded the weakest gain at 1.1 percent.

Capacity growth varied considerably, rising 7 percent in Latin America and the Caribbean but only 1.3 percent in Europe.

Among major trade routes, Asia-North America led growth, followed by Europe-Asia and Europe-North America. Gulf-linked routes continued to face disruption from the Middle East conflict.

Meanwhile, jet fuel prices climbed 12.2 percent in July from June and were 56.9 percent higher than a year earlier, adding pressure to airline operating costs.