IATA releases March results

The International Air Transport Association (IATA) has released March 2017 demand growth results for global air freight markets, showing that all regions, with the exception of Latin America, reported year-on-year increases in demand in March 2017.

Airlines in Europe and Asia-Pacific posted the strongest growth, accounting for two-thirds of the industry-wide increase in demand, with the remaining growth split between North American and Middle Eastern carriers. African airlines made a modest contribution.

North American carriers posted an increase in freight volumes of 9.5 per cent in March 2017, and a capacity increase of 2.8 per cent. International freight volumes increased 14.2 per cent over the same period – the fastest pace since the boost to air freight from the consequences of congestion at U.S. West Coast seaports in 2015.

Seasonally-adjusted volumes have slowed to a near-standstill alongside a weakening in demand in Pacific routes; the further strengthening of the U.S. dollar continues to boost the inbound freight market, but is keeping the export market under pressure.

Overall, the March performance contributed to very strong first quarter (Q1) growth in freight volumes. After adjusting for the impact of the leap year in 2016, freight demand in Q1 2017 increased by nearly 11 per cent. Capacity increased by 3.7 per cent over the same period (leap year adjusted).

The strengthening of air freight demand in March is consistent with an uptick in world trade and a six-year high in new export orders. An increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, is also likely underpinning a portion of the strong performance.

“March capped a robust first quarter with the strongest year-on-year air freight growth in six-and-a-half years. Optimism is returning to the industry as the business stabilizes after many years in the doldrums,” commented Alexandre de Juniac, IATA’s director general and CEO.

“There is, however, still much lost ground to recover while facing the dual headwinds of rising fuel and labour costs. It remains critical to use the improvement in the industry’s fortunes as an opportunity to enhance the value offering by implementing modern customer-centric initiatives that streamline processes and reduce costs.”