Air cargo demand decreases in February as COVID-19 takes hold

Α Decrease font Enlarge font
Air cargo demand decreases in February as COVID-19 takes holdDemand, measured in cargo tonne kilometers (CTKs*), decreased by 1.4% compared to the same period in 2019

Geneva - The International Air Transport Association (IATA) released February 2020 data for global air freight markets showing that demand, measured in cargo tonne kilometers (CTKs*), decreased by 1.4% compared to the same period in 2019. Adjusting the comparison for the impact of the Lunar New Year, which fell in February in 2019, and the leap year in 2020, which meant an additional day of activity, seasonally-adjusted demand was down 9.1% month-on-month in February.

By February, the negative impacts of the COVID-19 crisis on air cargo demand were becoming visible. The month witnessed several significant developments:

  • Manufacturing production in China, one of the world’s largest air cargo markets, dropped sharply due to widespread factory closures and travel restrictions.
  • Global export orders fell to a historically low level. The global Purchasing Managers Index (PMI) is in contraction territory, with all major trading nations reporting falling orders.
  • Significant cargo capacity was lost as a result of airlines reducing passenger operations in response to government travel restrictions due to COVID-19, severely impacting global supply chains.

Cargo capacity, measured in available cargo tonne kilometers (ACTKs), dropped by 4.4% year-on-year in February 2020. This is subject to the same distortions as the non-seasonally adjusted demand numbers.

“The spread of COVID-19 intensified over the month of February, and with it, the impact on air cargo. Adjusted demand for air cargo fell by 9.1%. Asia-Pacific carriers were the most affected with a seasonally-adjusted drop of 15.5%. What has unfolded since is a story of two halves. The disruption of global supply chains led to a fall in demand. But the dramatic disruption in passenger traffic resulted in even deeper cuts to cargo capacity. And the industry is struggling to serve remaining demand with the limited capacity available. We only got a first glimpse of this in February. Among all the uncertainty in this crisis, one thing is clear—air cargo is vital. It is delivering lifesaving drugs and medical equipment. And it is supporting global supply chains. That’s why it is critical for governments to remove any blockers as the industry does all it can to keep the global air cargo network functioning in the crisis and ready for the recovery,” said Alexandre de Juniac, IATA’s Director General and CEO.

Regional Performance

Airlines in Europe suffered a sizeable decline in year-on-year growth in total air cargo volumes in February 2020, while North American and Asia-Pacific carriers experienced more moderate falls. Middle East, Latin America and Africa were the only regions to record growth in air freight demand compared to February 2019.

FEBRUARY 2020 (% YEAR-ON-YEAR)WORLD SHARE1CTKACTKCLF(%-PT)2CLF(LEVEL)3
Total Market
100.0%
-1.4%
-4.4%
1.5%
46.4%
Africa
1.8%
6.2%
3.0%
1.1%
36.8%
Asia Pacific
34.6%
-2.2%
-17.7%
8.6%
54.3%
Europe
23.6%
-4.1%
-3.8%
-0.2%
53.1%
Latin America
2.8%
1.8%
-2.6%
1.5%
34.2%
Middle East
13.0%
4.3%
6.0%
-0.7%
46.1%
North America
24.3%
-1.8%
4.1%
-2.2%
37.2%

1- % of industry CTKs in 2019 2- Year-on-year change in load factor 3-Load factor level

Asia-Pacific airlines saw demand for air cargo contract by 2.2% in February 2020, compared to the year-earlier period. Seasonally-adjusted cargo demand fell by 15.5% compared to January 2020, to levels last seen in early 2014. The drop in demand was largely due to the impact of COVID-19. Capacity decreased 17.7% - the largest fall since early 2013. Cargo capacity in China dropped sharply in February, driven in large part by the collapse of belly-hold capacity.

North American airlines saw demand decrease by 1.8% in February 2020, compared to the same period a year earlier. Capacity increased by 4.1%. Cargo traffic on the Asia-North America trade lanes decreased by 2.4% year-on-year as a result of factory closures in Asia due to COVID-19.

European airlines posted a 4.1% decrease in cargo demand in February 2020 compared to the same period a year earlier. European carriers were among the first to cancel flights to and from Asia, contributing to the drop in demand in February. The Within Europe market decreased by 7.8% year-on-year. This suggests that the region was affected by global supply chain disruptions and early COVID-19 containment measures – notably in Northern Italy, an important manufacturing region. Capacity decreased by 3.8% year-on-year.

Middle Eastern airlines’ cargo demand increased 4.3% in February 2020 compared to the year-ago period. Capacity increased by 6.0%. However, given the Middle East’s position connecting trade between China and the rest of the world, the region’s carriers have significant exposure to the impact of COVID-19 in the period ahead. 

Latin American airlines experienced an increase in freight demand in February 2020 of 1.8%. Capacity decreased by 2.6% year-on-year. The region was relatively unaffected by the COVID‑19 outbreak in February. However, disrupted global supply chains and a fragile economic backdrop in some countries in the region continue to create headwinds for air cargo.

African carriers posted the fastest growth of any region for the 12th consecutive month in February 2020, with an increase in demand of 6.2% compared to the same period a year earlier. Capacity grew 3.0% year-on-year. The Africa-Asia and Africa-Middle East trade lanes continue to bring robust growth to the region.

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

Photo Source: Wikimedia Commons License: CC-BY-SA Copyright: Michael W. Pendergrass  pixabay.com

Tornos
  1. 28/03 18:41

    Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups

  2. 28/03 17:32

    Greece to auction three-month T-bills on April 3, 2024 in a book entry form

  3. 28/03 15:46

    Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network

  4. 28/03 14:44

    IPTO announces framework agreement tender for undersea power cables in Greece

  5. 28/03 11:49

    IOBE: Construction sector in Greece records robust growth and good prospects

  6. 26/03 23:51

    St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ

  7. 26/03 21:59

    PM at Economic Club of Canada: Greece is an attractive investment destination

  8. 26/03 17:56

    Greek State budget primary balance reaches a surplus of 3,378 million euros

  9. 26/03 11:45

    Ancient Messene to get upgraded visitors' facilities after approval by Council

  10. 23/03 17:43

    New requirements for 'Golden Visa' program to kick in on March 31

  11. 23/03 16:49

    Athenians continue to head out of the Greek Capital for March 25 long weekend

  12. 23/03 16:47

    Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm

  13. 22/03 21:54

    US President on Greek Independence Day: Alliance with Greece stronger than ever

  14. 22/03 19:51

    High diplomacy and geopolitics at Delphi Economic Forum IX in Greece

  15. 22/03 19:32

    Tax authorities enable payments with foreign bank cards in Greece

  16. 22/03 14:19

    Greece to take part in Earth Hour on Saturday

  17. 22/03 00:24

    Greece ranks first on list of countries with fastest business environment progress

  18. 22/03 00:02

    Hellenic Police acquires first electric VAN-type highway patrol vehicle

  19. 21/03 22:41

    Greek Finance Ministry tightens Golden Visa rules

  20. 21/03 15:33

    Unseen Museum presents "The stele of the twin babies" exhibition in Athens

  21. 20/03 22:48

    Health Minister: 95% of Greek hospitals to perform afternoon surgeries

  22. 20/03 21:52

    Greek Deputy Minister of Justice meets delegation from US Embassy in Athens

  23. 20/03 21:44

    Greek Interior Minister to visit United States and Canada on postal vote

  24. 20/03 20:55

    Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance

  25. 20/03 18:01

    Development Minister: We continue the battle against high prices in Greece

  26. 19/03 22:28

    President of the Hellenic Republic meets her Ethiopian counterpart in Athens

  27. 19/03 20:57

    Greek Tourism Minιster meets Hellenic Chamber of Hotels

  28. 19/03 20:25

    FinMIn: Moody’s analysis records significant progress in the Greek economy

  29. 19/03 11:15

    Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin

  30. 18/03 22:20

    American Hellenic Educational Progressive Association honors Past Supreme President

  31. 16/03 13:01

    Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens

  32. 16/03 12:56

    Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto

  33. 16/03 11:28

    Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres

  34. 15/03 21:50

    Greek Minister announces conference on defence ecosystem in Athens from Lithuania

  35. 15/03 13:45

    PM: More than 80 hospitals and 156 health centres being upgraded in Greece

  36. 15/03 12:55

    Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation

  37. 14/03 23:43

    President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava

  38. 14/03 22:58

    American Express report highlights Global Travel Trends during 2024

  39. 14/03 22:52

    Four hospitals in Attica Region already organizing afternoon surgical procedures

  40. 14/03 22:49

    US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki

  41. 14/03 22:43

    Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos

  42. 14/03 19:32

    No new intubations for Covid-19 recorded in Greece for the first time

  43. 14/03 18:36

    Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday

  44. 14/03 14:48

    HRADF eyes bidders for Lavrio Port majority share

  45. 14/03 12:54

    Electric buses to be deployed on the streets of Athens and Thessaloniki by May

  46. 13/03 22:23

    Chairman: 2023 was an exceptional one for AEGEAN Airlines

  47. 13/03 20:11

    Prices of basic lenten products either lower or equal to last year's in Greece

  48. 13/03 19:15

    US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis

  49. 13/03 17:19

    Greece shines at 1st European Cruise Exhibition

  50. 13/03 12:26

    Greece shows new costumes for revamped Olympic Flame-lighting ceremony

  51. 12/03 22:46

    Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’

  52. 12/03 21:38

    The President of the Hellenic Republic to visit Slovakia on March 13-15

  53. 12/03 20:29

    First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki

  54. 11/03 23:58

    Greek Foreign Minister: We stand behind Montenegro's European perspective

  55. 11/03 23:47

    Visa Express for Turkish citizens to commence on five Greek islands in March

  56. 11/03 19:40

    Amadeus acquires travel payments expert Voxel

  57. 11/03 18:49

    Microsoft Data Center construction kicks off in Spata next to Athens Airport

  58. 11/03 17:53

    Dodecanese Federation marked 76th Anniversary of Unification with Greece

  59. 09/03 22:23

    The future of travel planning is multimodal and interactive

  60. 08/03 14:27

    Prime Minister: Radical change in Greek education and a brave reform for growth

  61. 08/03 14:24

    Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests

  62. 08/03 14:24

    Applications to out-of-court settlement more than doubled in Greece in February

  63. 08/03 13:18

    Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday

  64. 07/03 14:12

    Athens wins World Travel Award 2024 as the top city-break destination in Europe

  65. 06/03 22:51

    WTTC data show Greece and Portugal lead league for growth in tourist arrivals

  66. 06/03 20:28

    Greek Tourism Minister at ITB: 2024 will be another excellent year for sector

  67. 06/03 19:47

    Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday

  68. 06/03 18:43

    European Union actions of 274m euros to support cultural heritage in Greece

  69. 06/03 16:37

    'Odontotos' rack railway temporarily stopped until landslides issue is resolved

  70. 06/03 14:40

    Minister: Bringing about the return of Greeks abroad 'a moral duty'

  71. 05/03 14:28

    Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida

  72. 05/03 14:21

    The 'Lent Basket' to be launched in Greece on March 13

  73. 05/03 14:11

    ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023

  74. 05/03 12:24

    Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'

  75. 04/03 22:02

    Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly

  76. 04/03 21:47

    Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary

  77. 04/03 20:27

    Labor chief: Greece to train 500,000 workers in digital, green skills by 2025

  78. 04/03 19:44

    Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday

  79. 04/03 15:12

    Athens Riviera | The summer experience with Athens as a background

  80. 29/02 22:54

    Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday

  81. 29/02 21:44

    Greece and Germany set up Working Group on shipping cooperation

  82. 29/02 21:30

    Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points

  83. 29/02 21:03

    Temple of Poseidon at Sounion near Athens to get new lighting system

  84. 29/02 21:02

    Greek Tourism Minister meets with Ambassador of Qatar

  85. 29/02 20:47

    Greece is represented by 60 firms at GULFOOD 2024 exhibition

  86. 29/02 19:58

    Greek government gives 1+1 month extension for cash register-integrated POS terminals

  87. 29/02 19:49

    Archangel Michael Church Dance Program shines at Folk Dance Festival in SF

  88. 29/02 15:39

    'Renovate-rent' programme to be launched, Minister tells Greek Parliament

  89. 29/02 12:39

    Rio-Antirrio ferry line in central Greece closed due to strong winds

  90. 28/02 21:34

    Weather with heavy rain and storms in Greece as of Sunday night

  91. 28/02 17:31

    CEO: The goal is for PPC to become a leading player in Southeast Europe

  92. 28/02 17:04

    New Wyndham Hotels Market Managing Director of Central and Eastern Europe

  93. 28/02 12:21

    Minister: Transactions with the Greek State will be further simplified in 2024

  94. 28/02 11:57

    24-hour strikes halt trains and ferries in Greece

  95. 27/02 17:25

    UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists

  96. 27/02 15:00

    Greek Prime Minister: Relations with Armenia can become even more productive

  97. 27/02 14:26

    Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world

  98. 27/02 13:15

    Price cuts of up to 15% in important product categories in Greece after March 1

  99. 27/02 12:46

    Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion

  100. 26/02 18:30

    Annual Summit of Women Political Leaders (WPL) to be held in Athens in April