Middle Eastern carriers post marginal increase in cargo volumes

Muscat: Middle Eastern carriers posted a 0.5 percent increase in cargo volumes in June 2023 compared to a year ago, according to a new report.

“This was a strong turnaround from the 2.9 percent year-over-year decline registered in May with capacity rising 11.1 percent for the month,” the International Air Transport Association (IATA) released data for June 2023 global air cargo markets show
“Both Middle East-Asia and Middle East-Europe route areas saw annual growth. For the first half of the year, cargo demand was down 5.6 percent compared to a year ago, with an 11.2 percent hike in capacity.”

The IATA report further said that Asia-Pacific airlines saw their air cargo volumes decrease by 3.6 percent in June 2023 compared to the same month in 2022. This was also a decline compared to May (-2.5 percent), mainly owing to weak demand on within-Asia markets, although the Asia-North America trade lane saw improved performance. Available capacity in the region increased by 24.4 percent compared to June 2022. Looking at the first half of 2023, cargo demand was down 6.5 percent versus the year-ago period against a 27 percent rise in capacity.

North American carriers had a 6.5 percent decrease in total cargo volumes in June 2023 compared to the same month in 2022, marking the fourth consecutive month in which the region had the weakest performance. This was, however, an improvement compared to May (-8.6 percent). Europe-North America CTKs shrank by only 2.7 percent in June, following three months of double-digit contractions. Capacity increased 0.7 percent compared to June 2022. For the 2023 first half, cargo demand was down 10.5 percent compared to the 2022 first half, while capacity dipped 0.7 percent.

European carriers experienced a 2.8 percent decrease in cargo volumes in June 2023, compared to the same month in 2022. This was an improvement in performance compared to May (-6.6 percent), in part due to the aforementioned Europe-North America performance. Capacity increased 4.4 percent compared to June 2022. Cargo demand was down 10.2 percent for the first six months of 2023 compared to last year, as the half-year capacity rose 2.5 percent.

The IATA report further said that global demand, measured in cargo tonne-kilometres (CTKs), fell 3.4 percent in June compared to June 2022 (-3.7 percent for international operations). For the half year, demand slid 8.1 percent compared to the January-June period of 2022 (-8.7 percent for international operations). However, demand in June was only 2.4 percent below June 2019 levels (pre-pandemic).

“We remain hopeful that the difficult trading conditions for air cargo will moderate as inflation eases in major economies. This, in turn, could encourage the central banks to loosen the money supply, which could stimulate greater economic activity,” said Willie Walsh, IATA’s Director General.