Global air cargo demand weakened in 2018, pressured by a slowdown in freight volumes in the final months of the year. Demand growth, measured in freight tonne kilometers (FTKs), grew 3.5% for the year, down sharply from the 9.7% growth rate recorded in 2017, according to IATA’s Air Freight Market Analysis. Analysts had expected a full-year growth rate of 4.1%. IATA said the slowdown in freight demand partly reflected a typical pattern of the inventory restocking cycle, which was compounded by increasing headwinds from renewed signs of weakness in global trade, as evidenced by the new export orders component of the global manufacturing Purchasing Managers’ Index (PMI), which has fallen for nine of the last 12 months. “Air cargo demand lost momentum towards the end of 2018 in the face of weakening global trade, sagging consumer confidence and geopolitical headwinds,” IATA DG and CEO Alexandre de Juniac said. “We are cautiously optimistic that demand will grow in the region of 3.7% in 2019. But with the persistence of trade tensions and protectionist actions by some governments there is significant downside risk.” Industry-wide FTK growth ended the year on a weak note, with year-on-year (YOY) cargo volumes 0.5% lower for the month of December, the lowest annual growth rate since March 2016. That figure was dragged lower by Asian-Pacific carriers, which slipped 4.8% from the year-earlier period.<br/>
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Growth in passenger numbers at European airports slowed in 2018 and freight traffic decelerated sharply, airport association ACI Europe said on Wednesday, adding that uncertainty over the global economy and Brexit could hinder numbers this year too. Passenger growth in Europe slowed to 6.1% in 2018 from 8.5% in 2017, which had been the quickest growth since 2004. Freight traffic declined much more sharply, from 8.4% growth in 2017 to 1.8% last year, with drops in traffic in November and December. “The trend of decreasing freight traffic is hard to ignore. It reflects weakening economic data and contraction forces at play, not just in Europe but around the world. These will ultimately translate into lower passenger demand,” said Olivier Jankovec, DG of ACI Europe. “Adding to that, volatile oil prices, labour cost pressures and more consolidation should also lead airlines to be more cautious with capacity expansion. So pressures on passenger traffic are likely to come both from the demand and supply sides in 2019.” Jankovec also said Brexit uncertainty was the “top immediate risk”, with ACI Europe’s figures already showing that British airports were among the weakest for passenger growth.<br/>