IATA reports small growth in air cargo demand in September

IATA has released data for global air cargo performance in September that shows that the industry enjoyed a continued moderate recovery in the month. Global demand, as measured in cargo tonne km, increased by 1.9% compared to September 2022 levels (and was up by 1.6% specifically for international operations). Capacity, as measured in available cargo tonne km, rose by 12.1% compared to September 2022 (and was up by 11.0% specifically for international operations). Growth was largely attributable to the increase in available international bellyhold capacity, which rose 31.5% year on year as airlines scaled up operations to meet peak-northern summer travel season demand, IATA said. There are concerns that should be noted, however, IATA said. One is the fact that global cross-border trade contracted for the fifth month in a row in August, falling by 3.8% year on year. This, IATA opined, reflected the cooling global macroeconomic environment. In September, the average price of jet fuel was $131 per barrel, representing a 43.1% increase from the May 2023 price. Recouping some of this added cost from surcharges in September contributed to the first increase in air cargo yields since November 2022. Willie Walsh, IATA’s DG, remarked: “Air cargo eked out modest growth (1.9%) in September despite falling trade volumes and high jet fuel prices. That clearly shows the strength of air cargo’s value proposition. With the key export order and manufacturing PMIs hovering near positive territory, we can be cautiously optimistic for a strong year-end peak season.”<br/>