Thursday, September 18, 2025
25.9 C
Lagos

African Airlines Report 1.3% Drop in 2018 Cargo Growth

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%.

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.

spot_img
spot_img

Hot this week

Designing the Future: Arc Christian Benimana, Prof Taibat Lawanson to Headline Ecobank Design and Build 2025

Ecobank Nigeria has announced that celebrated architect Arc. Christian...

Sovereign Trust Insurance Wins Enactus Catalyst Award

From L-R: Victor Akinfala, Head Partnerships & Special Projects,...

SEC DG: Commission Considering Gradual Implementation of ISSB Standards

The Director General of the Securities and Exchange Commission...

Universal Insurance MD/CEO, Jeff Duru, Bags CIBN Associate Membership

  Dr. Jeff Duru Managing Director/CEO Universal Insurance Plc The Managing Director/CEO of...

Sterling One Foundation CEO, Olapeju Ibekwe, Joins Board of UN Global Compact Network Nigeria Ahead of UNGA 80

    Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation,...

Topics

Nestle Nigeria Plc: Strong Revenue, Recovery of Gross Margin in Q2-18

According to Cordros Capital, NESTLE reported 56.9% y/y EPS...

NCC: ‘We’re Making Progress in Enthroning 5G for Digital Economy’

L-R: Lead Consulting Strategist, DigitalSENSE Africa/Group Executive Editor, ITREALMS...

Economy Post-Election: Afrinvest Lists 7-Point Agenda for Buhari

Buhari receiving Certificate of Return from INEC Following the conclusion...

NCDMB Retains Top Ranking as Presidential Council Evaluates Efficiency, Transparency of MDAs

The Nigerian Content Development and Monitoring Board (NCDMB) has...

5 Nigerian Insurers Under Investigation over Alleged Under-selling of Motor Insurance

Mr. O. S. Thomas Commissioner for Insurance/CEO National Insurance Commission Federal Republic...

Unity Bank Introduces USSD in Nigerian Languages

Unity Bank Plc has launched an Unstructured Supplementary Service...

Dangote Cement Denies Running Sales Promo, to Prosecute Peddlers of Falsehood

Management of Dangote Cement Plc has denied reports in...

Angola: Top Beneficiary of $89.6bn Chinese Loans to Africa

From 2000 to 2014, Angola received 23% of Chinese...
spot_img

Related Articles

Popular Categories

spot_imgspot_img