IATA Report: Airfreight Up In February
The International Air Transport Association (IATA) this week has released the results for February 2018 for demand growth of global air freight markets. The results show a 6.8% increase in demand measured in freight tonne kilometers (FTKs) compared to the February 2017.
Demand increased by 7.7% when taking into account adjustments for the potential Lunar New Year distortions by combining growth in January 2018 and February 2018. These figures reflect the strongest start to a year since 2015.
Freight capacity grew by 5.6% measured in available freight tonne kilometers (AFTKs) compared to the previous period last year. Demand growth exceeded capacity growth for the 19th month in succession, which is positive for airline yields and the sector’s financials.
Although the continued increase in air cargo demand is consistent with ongoing robust global trade flows, they are indicators that the peak of the upturn is over.
IATA’s Director General and CEO, Alexandre de Juniac said, “Demand for air cargo continues to be strong, with 6.8% growth in February. The positive outlook for the rest of 2018, however, faces some potentially strong headwinds, including escalation of protectionist measures into a full-blown trade war. Prosperity grows when borders are open to people and to trade, and we are all held back when they are not.”