Air cargo market told to brace for ‘growing challenges’ as demand falls

Demand for air cargo fell in March, according to data released by IATA on 3 May, as factors including China’s ‘zero-Covid’ policies and the Russia-Ukraine war weighed on demand and threatened to become longer-term hindrances. The drop in demand comes after air freight performed strongly in 2021, and reflects a significant shift in fortunes between industry sectors as the passenger side of airline operations finally reports widespread recovery momentum. “Peace in Ukraine and a shift in China’s Covid-19 policy would do much to ease the industry’s headwinds,” says IATA director general Willie Walsh. “As neither appears likely in the short term, we can expect growing challenges for air cargo just as passenger markets are accelerating their recovery.” Global air cargo demand measured in cargo tonne kilometres (CTKs) fell by 5.2% in March compared with the same month in 2021, IATA reports. “Peace in Ukraine and a shift in China’s Covid-19 policy would do much to ease the industry’s headwinds,” says IATA director general Willie Walsh. “As neither appears likely in the short term, we can expect growing challenges for air cargo just as passenger markets are accelerating their recovery.” Global air cargo demand measured in cargo tonne kilometres (CTKs) fell by 5.2% in March compared with the same month in 2021, IATA reports. While capacity was up 1.2% on the same basis, the airline body notes that this is a significant decline from the year-on-year increase seen in February, with Asia and Europe experiencing the largest falls. Story has more.<br/>