Air cargo industry braces for worst year since financial crisis

The peak holiday season started off with a thud for cargo airlines, as demand continued to fall short of supply, amid slowing global growth and a trade war that continues to weigh on the sector. Air cargo demand fell 3.5% in October, the start of the peak season when companies are stocking up inventory for the holiday shopping season, compared with a year ago, marking the 12th consecutive month of declines, the International Air Transport Association said Wednesday. The US-China trade war, generally slowing trade, and weakening economic growth are weighing on demand and setting up air freight volumes this year to be the weakest since the financial crisis, said the IATA, a trade group that represents most of the world’s airlines. “Air cargo’s peak season is off to a disappointing start,” said Alexandre de Juniac, DG of the IATA. “It has been a very tough year for the air cargo industry.” Air cargo capacity has outpaced demand for 18 months, the IATA said. The Middle East and Asia-Pacific regions posted the sharpest declines, 3.5% and 3.3%, respectively. Europe demand fell 2.3% from October 2018, while demand in North America dropped 2.2%. Latin American volumes fell 1.9%. <br/>