Sunday, September 28, 2025
26 C
Lagos

African Airlines Record 6.8% Cargo Decline in July

The International Air Transport Association (IATA) released data for global air freight markets in July 2016 showing robust growth in demand. Measured in freight tonne kilometers (FTKs), demand increased 5.0% in July 2016, compared to July 2015.

This was the fastest pace in almost 18 months. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 5.2% year-on-year, outstripping demand and keeping yields under pressure.

Despite the subdued global trade backdrop, carriers in the world’s four biggest air cargo markets – Asia-Pacific, Europe, North America and the Middle East – reported an increase in freight demand. The strongest growth occurred in Europe and the Middle East, with July demand up by 7.2% and 6.7% respectively, compared to the same period last year.

“July was a positive month for air freight—which is an all too rare occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalization,” said Alexandre de Juniac, IATA’s Director General and CEO.

July 2016
(% year-on-year)
World share¹

FTK

AFTK

FLF
(%-pt)²   
FLF
(level)³  
Total Market 100.0% 5.0% 5.2% -0.1% 41.3%
Africa 1.5% -6.8% 31.3% -7.9% 19.4%
Asia Pacific 38.9% 4.9% 2.7% 1.1% 53.1%
Europe 22.3% 7.2% 3.8% 1.4% 43.2%
Latin America 2.8% -5.6% 10.1% -5.0% 30.0%
Middle East 14.0% 6.7% 11.0% -1.6% 39.2%
North America 20.5% 4.1% 3.4% 0.2% 31.7%

 

Regional Performance

Asia-Pacific airlines reported a 4.9% increase in demand for air cargo in July compared to last year. In particular, growth has been driven by strong increases in the large ‘within Asia’ market in recent months, but the latest business surveys from the region paint a mixed picture. Capacity in the region expanded 2.7%.

North American carriers saw freight volumes expand 4.1% in July 2016 compared to the same period last year, and capacity increase by 3.4%. International freight volumes (which grew 1.3% in July) continue to suffer from the strength of the US dollar which has kept the US export market under pressure.

European airlines posted the largest increase in freight demand of all regions in July, 7.2% year-on-year. Capacity increased 3.8%. The positive European performance corresponds with an increase in export orders in Germany over the last few months. Europe’s freight volumes have now surpassed the level reached during the air freight rebound following the Global Financial Crisis. The only other region to achieve this is the Middle East.

Middle Eastern carriers saw air freight demand increase by 6.7% in July 2016 year-on-year. Capacity increased by 11%. The region’s growth rate, while still strong, has eased to half the 14% recorded annually between 2012 and 2015. This is mainly attributable to slower freight growth between the Middle East and Asia.

Latin American airlines saw demand contract by 5.6% in July 2016 compared to the same period last year and capacity increase by 10.1%. The region continues to be blighted by weak economic and political conditions, particularly in the region’s largest economy, Brazil.

African carriers recorded a 6.8% decrease in year-on-year freight demand in July 2016 – the largest decline in seven years. African airlines’ capacity surged by 31.3% on the back of long-haul expansion (from a small base).

spot_img
spot_img

Hot this week

AIICO Deepens Bond with Retirees, Holds Annuity Forum in Lagos, PH

Mr. Gbenga Ilori, Head, Retail Business at AIICO, in...

Sovereign Trust Insurance Holds 30th AGM

L-R: Eric Balogun, Independent Director, Emi Faloughi, Director, Kayode Adigun,...

Unity Bank Shareholders Approve Merger with Providus Bank

  EGM: From left: Mr. Usman Abdulkadir, Executive Director, Risk...

NNPCL: Ogoni Re-entry is a Beacon of Reconciliation through Collaboration

The re-entry into Ogoniland marks a historic turning point...

NLNG, NCDMB Celebrate 122 Graduates of Train 7 HCD Training Program

NLNG in collaboration with the Nigerian Content Development and...

Topics

NAICOM, Police Partner on Enforcement of Third Party Motor Insurance

The Commissioner for Insurance and Chief Executive Officer of...

Migo, Credit Platform Raises $20m Series B Funding

Migo (formerly Mines.io), a startup reinventing the way people...

Nigeria Re-Elected as ITU Council Member

Professor Umar Garba Danbatta, Executive Vice-Chairman and Chief Executive...

Niger Insurance: Leveraging on Retail & Micro-insurance for Sustainable Growth

For Niger Insurance Plc, the future growth trajectory of...

Abbey Mortgage Bank Records N76m Profit in Q1 2021

L-R: Mobolaji Adewumi, Executive Director, Finance and Admin; Lolita...

Business Journal Weekly Online Newspaper to go LIVE August 7

The Business Journal weekly online newspaper will commence publication...

Moniepoint Champions Financial Inclusion to Transform Lives in Africa

Moniepoint Microfinance Bank has reaffirmed its commitment to financial...

NCC, ALTON Back 2021 ITREALMS E-Waste Dialogue

The apex telecommunications regulator, the Nigerian Communications Commission (NCC)...
spot_img

Related Articles

Popular Categories

spot_imgspot_img