IATA: Air Freight demand finishes year 3.5% higher for 2018

Α Decrease font Enlarge font
IATA: Air Freight demand finishes year 3.5% higher for 2018Air cargo’s performance in 2018 was sealed by a softening in demand in December

Geneva – The International Air Transport Association (IATA) released full-year 2018 data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs) grew by 3.5% compared to 2017. This was significantly lower than the extraordinary 9.7% growth recorded in 2017. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 5.4% in 2018, outpacing annual growth in demand. This exerted downward pressure on the load factor but yields proved resilient.

Air cargo’s performance in 2018 was sealed by a softening in demand in December. Year-on-year, December demand decreased by 0.5%. This was the worst performance since March 2016. Freight capacity, however, grew by 3.8%. This was the tenth month in a row that year-on-year capacity growth outstripped demand growth.

International e-commerce grew in 2018 which was a positive factor for the year. Yet, there was a softening of several key demand drivers

  • The restocking cycle, during which businesses rapidly built up inventories to meet demand, ended in early 2018;
  • Global economic activity weakened;
  • The export order books of all major exporting nations, with the exception of the US, contracted in the second half of 2018;
  • Consumer confidence weakened compared to very high levels at the beginning of 2018.

“Air cargo demand lost momentum towards the end of 2018 in the face of weakening global trade, sagging consumer confidence and geopolitical headwinds. Still, demand grew by 3.5% compared to 2017. We are cautiously optimistic that demand will grow in the region of 3.7% in 2019. But with the persistence of trade tensions and protectionist actions by some governments there is significant downside risk. Keeping borders open to people and to trade is critical,” said Alexandre de Juniac, IATA’s Director General and CEO.

“To attract demand in new market segments, the air cargo industry must improve its value proposition. Enabling modern processes with digitalization will help build a stronger foothold in e-commerce and the transport of time- and temperature-sensitive goods such as pharmaceuticals and perishables,” said de Juniac. 

 

DECEMBER 2018 (% YEAR-ON-YEAR)WORLD SHARE1FTKASTKFLF (%-PT)2FLF (LEVEL)3
Total Market 100.0% -0.5% 3.8% -2.1% 48.8%
Africa 1.7% -2.2% 4.9% -2.8% 38.1%
Asia Pacific 35.4% -4.5% 2.6% 4.1% 54.0%
Europe 23.3% 1.9% 3.7% -1.0% 56.7%
Latin America 2.6% -0.1% 6.0% -1.8% 29.1%
Middle East 13.3% 0.1% 4.5% -2.1% 48.8%
North America 23.7% 2.9% 4.5% -0.6% 41.4%


Regional Performance

Airlines in all regions with the exception of Africa reported an annual increase in demand in 2018.

  • Asia-Pacific carriers posted the weakest growth of any region in December 2018 with a decrease in demand of 4.5% compared to the same period a year earlier. Capacity increased by 2.6%. The weaker performance in December contributed to growth in freight demand of only 1.7% in 2018 compared to 2017. Annual capacity increased 5.0%. The weaker performance of Asia-Pacific carriers in 2018 largely reflects a slowing in demand for exports from the region’s major exporters (China, Japan and Korea). Signs of a moderation in economic activity in China and an escalation of trade tensions continue to pose a downside risk to air cargo in Asia-Pacific.
  • North American airlines posted the fastest growth of any region for the seventh consecutive month in December 2018 with an increase in demand of 2.9% compared to the same period a year earlier. Capacity increased by 4.5%. This contributed to an annual growth in demand in 2018 of 6.8%, matching the rate of capacity increase. The strength of the US economy and consumer spending have helped support the demand for air cargo over the past year, benefiting US carriers.
  • European airlines posted a 1.9% year-on-year increase in freight demand in December 2018 and a capacity rise of 3.7%. The improved performance in December contributed to an annual growth in demand for air cargo of 3.2% in 2018. Capacity increased by 4.3% in the same year. Weaker manufacturing conditions for exporters, particularly in Germany, one of Europe’s key export markets, along with mixed economic indicators impacted demand in 2018.
  • Middle Eastern carriers’ freight volumes increased 0.1% year-on-year in December and capacity increased 4.5%. This contributed to an annual increase in demand of 3.9% in 2018 – the third fastest growth rate of all the regions. Annual capacity increased 6.2%. The region continues to be affected by geopolitical issues. 
  • Latin American airlines experienced a decrease in year-on-year demand of 0.1% in December after three months of positive growth. Capacity increased by 6.0%. Despite a decrease in demand, it’s worth noting that the within South America market continues to perform strongly, with international demand up almost 20% year-on-year. Annual growth in freight demand among Latin America carriers in 2018 increased by 5.8% - the second fastest of all regions. Annual capacity increased 3.4% in 2018.
  • African carriers’ saw freight demand decrease by 2.2%, in December 2018, compared to the same month in 2017. This was significantly less than the 9.4% decrease the previous month. Capacity increased by 4.9% year-on-year. It’s worth noting that seasonally-adjusted international freight volumes, despite being 7.7% lower than their peak in mid-2017, are still 50% higher than their most recent trough in late-2015. Annual growth in freight demand among Africa carriers in 2018 decreased by 1.3% and capacity grew by 1%.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

Photo Source: Wikimedia Commons License: CC-BY-SA Copyright: Björn Strey

Tornos
  1. 19/02 10:04

    Cyprus’ residents trips abroad grow by 11% in January 2019

  2. 19/02 09:59

    Eminent US archaeologist wants Parthenon marbles return to Greece

  3. 19/02 09:52

    Athens Benaki Museum Pireos opens its architectural archives to children

  4. 19/02 09:48

    Tourist arrivals to Cyprus up by 8% in January 2019 due to rise in UK flow

  5. 19/02 09:42

    Scoot: Flights from Australia to Greece for only $299

  6. 19/02 09:35

    Athens-based company presents Euripides-inspired play to London theatre

  7. 19/02 09:29

    The Telegraph: Foreign Airbnb golden visa investors booting Greek tenants

  8. 19/02 09:23

    Climbing Tourism: Female expedition to plant Greek flag on Mount Everest

  9. 19/02 08:55

    Ancient Greek phisosopher Aristotle: Pursuit of happiness not a destination but a journey

  10. 19/02 08:47

    City Break report: Athens can be a changed city by the 2021

  11. 19/02 08:42

    Medical Tourism: Greek-Australian philanthropist donates $500,000 for health care

  12. 19/02 08:33

    Ten Athens eateries distinguished at FNL Best Restaurants awards

  13. 19/02 08:28

    Expression of interest for "Thriassion II" logistics park near Athens to take place in March

  14. 19/02 08:22

    Report: Real estate market growth can boost the Greek economy

  15. 19/02 08:13

    Greece’s top-10 archaelogical discoveries during the last decade

  16. 18/02 10:16

    AHEPA welcomes Congress support for United States-Greek relations

  17. 18/02 10:12

    Undeclared work decreased significantly in Greece during 2018

  18. 18/02 10:08

    BBC radio provides translation of quintessential Greek words

  19. 18/02 10:00

    Video of Good Samaritan saving stranded sea turtle in Crete goes viral

  20. 18/02 09:56

    International tender for casino at Helleniko site on the horizon

  21. 18/02 09:52

    "Greek Freak" Giannis Antetokounmpo to play for Greece in FIBA World Cup

  22. 18/02 09:48

    Concession contract for Crete's new Kasteli Airport to be inked by end of February

  23. 18/02 09:40

    InSETE report records 7% drop in air seats to Greece after several years of rises

  24. 18/02 09:35

    Saudi Arabian Airlines launches new Riyadh-Athens flight connection on June 5

  25. 18/02 09:28

    Juncker expresses condolences for iconic Greek "Baker of Kos" passing

  26. 18/02 09:22

    Book on Google promotes direct hotel reservations in more European markets

  27. 18/02 09:12

    AP: Hundreds stranded as British carrier Flybmi collapses due to fuel cost and Brexit

  28. 18/02 09:07

    EU Commissioner Cretu in Ancient Olympia: Greece has ingredients and tools for success

  29. 18/02 09:01

    Movie Tourism: Cyprus joins race to attract filmmakers for shooting

  30. 18/02 08:52

    Visitors and revenues to Greek museums and sites rise in first ten months of 2018

  31. 17/02 13:06

    Athens airport concession contract extension approved by Greek Parliament

  32. 17/02 12:44

    Award-winning Australian writer Hannah Kent to visit Athens and Thessaloniki

  33. 17/02 12:37

    First Energy Leadership Summit to be held in Athens in June

  34. 17/02 10:20

    Road rules restricting use of vintage cars amended in Greece

  35. 16/02 22:40

    AHI President visits Greece and Cyprus for series of meetings and events

  36. 16/02 22:36

    US government offices in Greece to stay closed on Monday, February 18

  37. 16/02 22:26

    Norwegian Air offering summer deals with $159 one-way to Athens

  38. 16/02 22:13

    Thessaloniki Regional Forum hosts three-day event with Balkan agenda

  39. 16/02 20:44

    Folk Tourism: Greeks mark arrival of Spring with ancient tradition of Martis

  40. 16/02 18:32

    Cyprus Religious Tourism: Spiritual leaders urge churches' restoration

  41. 16/02 16:22

    Athens Half Marathon to take place on March 17

  42. 16/02 12:10

    Mountain professionals gather in Germany to seek their way to the top

  43. 16/02 10:06

    Greek banks: Deal on first home protection a positive step

  44. 15/02 23:57

    Cabinet greenlights changes in Cyprus Investment Program

  45. 15/02 23:50

    Greek “Blessings and Vows” wins best documentary awards

  46. 15/02 23:38

    Greek Minister stands firm on realizing Crete-Attica power connection

  47. 15/02 23:13

    The Hellenic Initiative supports “Agigma Zois” with a $17,000 grant

  48. 15/02 22:19

    iMEdD marks launch with a 24-hour program of events in Athens (video)

  49. 15/02 21:07

    Thessaloniki Metro's trial operation to commence soon

  50. 15/02 19:23

    Six major motorway projects underway in Greece during the next 5 years

  51. 15/02 19:02

    Ancient Greek tragedy "Agamemnon" at the National Theatre of China

  52. 15/02 17:04

    Greek supermarkets to record turnover growth of 1.5% from last year

  53. 15/02 15:59

    Greek MPs back separation of president's election from dissolution of Parliament

  54. 15/02 13:50

    AP report: Seven arrests for counterfeit cash targeting tourism in Greece

  55. 15/02 13:09

    Prince Charles supports more than 2,200 young unemployed people in Greece

  56. 15/02 13:01

    Greece selects Katerine Duska for Eurovision Song Contest 2019

  57. 15/02 12:31

    Greek violin workshops presented in Tarpon Springs, Florida

  58. 15/02 11:21

    Athens to welcome carnival season with event in Plaka on Sunday

  59. 14/02 23:00

    New documentary on Giannis Antetokoumpo’s fascinating career (video)

  60. 14/02 22:52

    Aristotle University of Thessaloniki cooperates with historic foundations

  61. 14/02 22:20

    New UNWTO report: Walking tourism promotes regional development

  62. 14/02 21:41

    62% rise in US air travel demand in next 20 years

  63. 14/02 20:32

    Fashion meets cinema at 1st Athens Fashion Film Festival on February 25-27

  64. 14/02 18:01

    Pet Tourism: Young Greek man in Crete dedicates his life to stray dogs

  65. 14/02 17:09

    City Break: Saint Valentine’s evening out in Athens costs nearly €70

  66. 14/02 16:49

    MasterCard: Contactless transactions in Greece grew 3,662% since 2016

  67. 14/02 16:41

    Media: ExxonMobil to announce huge discovery in Cyprus's plot 10 next week

  68. 14/02 16:18

    Ferry service to resume from Greek ports of Piraeus, Rafina and Lavrio on Friday

  69. 14/02 15:34

    Greeks in UK will have to travel to EU countries to vote in European elections

  70. 14/02 14:28

    Exiled Turks fleeing Erdogan regime find new lives in Greece

  71. 14/02 12:54

    IMTM: More than 700,000 Israelis to visit Greece in 2019

  72. 14/02 12:53

    Europarliament event on rebuilding Korakou Bridge to take place in Athens

  73. 14/02 12:03

    Main opposition leader repeats pledge for private universities in Greece

  74. 14/02 10:29

    AP report: Penguins celebrating Valentine’s Day with red felt hearts

  75. 13/02 23:43

    World’s largest espionage headquarters opens in Berlin after 12 years

  76. 13/02 23:38

    Mars One goes bankrupt ending private planet colonization project

  77. 13/02 23:37

    Giannis Antetokounmpo holds baby during entire TV interview (video)

  78. 13/02 22:53

    The story behind an ‘Olympic Airways’ plane resting in an Oregon forest

  79. 13/02 22:43

    Athina Onassis to visit Greece for equestrian event after 12-year absence

  80. 13/02 22:33

    Countdown for Cosco's €500 million master plan for Piraeus Port in Greece

  81. 13/02 21:44

    Tourist regions boost construction sector in Greece

  82. 13/02 21:28

    Thessaloniki Documentary Festival organizers announce Greek film lineup

  83. 13/02 19:26

    10 Greek startups participate in Infacoma 2019 exhibition

  84. 13/02 15:02

    Melbourne prepares for Lonsdale Street Greek Festival on February 23-24

  85. 13/02 14:52

    Strong winds keep ships docked at ports across Greece

  86. 13/02 13:55

    Athens Acropolis Museum presents scholars of Ottoman Archives

  87. 13/02 12:39

    Crete University researchers win prize for stroke response platform

  88. 13/02 10:18

    Giannis Antetokounmpo stars in Aegean Airlines commercial (video)

  89. 13/02 02:40

    Air France to connect Athens and Heraklion to French airports this summer

  90. 13/02 01:56

    Greek port of Piraeus signs deal with Italian ports of Venice and Chioggia

  91. 13/02 01:35

    Airline seat planning for flights to Greece stalls after years of soaring

  92. 13/02 01:29

    CERN chief: Cooperation with Greece can be developed further

  93. 13/02 01:08

    Green main opposition leader meets representatives of German firms

  94. 12/02 23:17

    German Rail DB launches ‘world’s fastest laboratory’ test train

  95. 12/02 23:05

    Procedures for changing signs and passports underway in Skopje

  96. 12/02 22:44

    Greek 'super fund' eyes state-run enterprises in its portfolio

  97. 12/02 20:06

    Religious Tourism: ‘Church’ of scientology sets shop in central Athens

  98. 12/02 20:03

    Aegean Airlines cancels February 13 flight to Brussels due to strike in Belgium

  99. 12/02 19:57

    'Airbnb-effect' cited for strong demand and price rises in certain Greek neighborhoods

  100. 12/02 18:21

    Media: Decisions on borrowers' main residences protection expected next week