New Delhi: Asia-Pacific airlines saw their air cargo volumes decrease by 18.6 per cent in November 2022, compared to the same month in 2021.
As per the International Air Transport Association (IATA), this was the worst performance of all regions and a decline in performance compared to October (minus 14.7 per cent).
Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China’s rising Covid cases. Available capacity in the region decreased by 4.5 per cent compared to 2021.
The IATA on Monday released data for November 2022 global air cargo markets, showing that demand softened as economic headwinds persist. It said that global demand, measured in cargo tonne-kilometers (CTKs), fell 13.7 per cent compared to November 2021 (minus 14.2 per cent for international operations). Similarly, capacity (measured in available cargo tonne-kilometers, ACTK) was 1.9 per cent below November 2021. This was the second year-on-year contraction following the first last month (in October) since April 2022.
International cargo capacity decreased 0.1 per cent compared to November 2021, said the IATA adding that compared to pre-Covid-19 levels (November 2019), there was a smaller contraction in overall demand (minus 10.1 per cent), while capacity was down 8.8 per cent.
“Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed. November presented several indicators with upside potential: oil prices stabilised, inflation slowed, and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising Covid cases are cause for careful monitoring,” IATA’s Director General Willie Walsh said.
The IATA report said that the global new export orders, a leading indicator of cargo demand, were stable in October. For major economies, new export orders are shrinking except in Germany, the US, and South Korea, where they grew. The US dollar has appreciated sharply, adding cost pressure as many costs are denominated in US dollars. This includes jet fuel, which is already at elevated levels, it added.
–IANS