KUALA LUMPUR: Global airfreight markets continued to grow in cargo volumes with a year-on-year (y-o-y) expansion of 5.1% in August this year as measured by freight tonne kilometres (FTKs), according to the International Air Transport Association (IATA).
In a statement yesterday, IATA said that capacity grew at a slower pace of 3.4% from the previous year.
It added that this was the second strong month in a row for cargo volumes, following the 6.1% y-o-y rise recorded in July.
The IATA said carriers in all regions reported an expansion in volumes with those in the Middle East, North America and Asia reporting the strongest growth in the 5% to 8% range.
By comparison, demand in Europe and Latin America lagged in the 1% to 1.5% range as a result of Brazilian economic weakness and EU sanctions on business with Russia, respectively, it said.
IATA director general and chief executive officer Tony Tyler said the outlook for air cargo is clearly getting better.
“However, there are some limiting factors on the extent of potential gains. Demand for air cargo is growing more slowly than global economic activity.
“Businesses are reported to have more confidence in the future, but the list of political and economic risks continues to moderate how that confidence translates into actual activity,” he said. — by Surin Murugiah
This article first appeared in The Edge Financial Daily, on October 2, 2014.