KUALA LUMPUR (April 4): Global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018, according to the International Air Transport Association (IATA).

In a statement yesterday, IATA said this was the fourth consecutive month of negative year-on-year growth and the worst performance in the last three years.

It said freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.7% year-on-year in February 2019.

It said this was the twelfth month in a row that capacity growth outstripped demand growth.

“Demand for air cargo continues to face significant headwinds:

Trade tensions weigh on the industry;

Global economic activity and consumer confidence have weakened;

And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018,” it said.

IATA director general and CEO Alexandre de Juniac said cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago.

“And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround.

“The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is trade is slowing. Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade,” he said.