KUALA LUMPUR (May 5): Global air freight markets for March 2016 showed a 2.0% drop in volumes measured in freight tonne kilometers (FTKs) compared to the same period last year, according to the International Air Transport Association (IATA).

In a statement May 4, IATA said that in contrast, freight capacity (measured in available freight tonne kilometers or AFTKs) rose by 6.9%, putting increased pressure on already struggling yields.

It said the weak results reflect subdued growth in world trade, exaggerated by the comparison to a particularly strong start to 2015 when air freight volumes were boosted by the effects of the US West Coast seaports strike.

IATA said the most significant fall in demand was reported by carriers in Asia-Pacific and North America. 

It said that combined, they accounted for around 60% of global freight traffic and reported declines of 5.2%, and 1.8%, respectively.

IATA director general and CEO Tony Tyler said it is shaping up to be another tough year for air cargo.

“February 2016 world trade volumes were only 0.4% higher than at the end of 2014. And the expectations of purchasing managers gives little optimism for an early uptick.

“The combination of fierce competition, capacity increases and stagnant demand makes this a very difficult environment in which to generate profits,” he said.