KUALA LUMPUR (June 3): Global air freight markets in April showing that demand dropped 27.7% compared to the same period in 2019 - the sharpest fall ever recorded, said the International Air Transport Association (IATA).

In a statement yesterday, IATA said there was still insufficient capacity to meet demand as a result of the loss of belly cargo operations on passenger aircraft.

It said global demand, measured in cargo tonne kilometers (CTKs), fell by 27.7% in April compared to the previous year (-29.5% for international markets).

IATA meanwhile said global capacity, measured in available cargo tonne kilometers (ACTKs), shrank by 42% in April compared to the previous year (-40.9% for international markets).

It said belly capacity for international air cargo shrank by 75% in April compared to the previous year.

It said this was partially offset by a 15% increase in capacity through expanded use of freighter aircraft.

The cargo load factor (CLF) rose 11.5 percentage points in April, the largest increase since tracking began.

The magnitude of the rise suggests that there is significant demand for air cargo which cannot be met owing to the cessation of most passenger flights, it said.

IATA’s Director General and CEO Alexandre de Juniac said there is a severe capacity crunch in air cargo.

He said demand fell by 27.7% compared to April 2019. But capacity was down 42% because of the sharp cuts in passenger operations which also carry cargo.

de Juniac said the result is damaging global supply chains with longer shipping times and higher costs.

He said airlines are deploying as much capacity as possible, including special charter operations and the temporary use of passenger cabins for cargo.

“Governments need to continue to ensure that vital supply lines remain open and efficient. 

“While many have responded with speed and clarity to facilitate the movement of cargo, government red-tape—particularly in Africa and Latin America—is preventing the industry from flexibly deploying aircraft to meet the demands of the pandemic and the global economy,” he said.

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