Latest Global Air Cargo Data Shows Strongest Growth in Two Years

Dark/Light Mode (15/01/24)  Global air cargo data for November 2023 shows the strongest year-on-year growth in roughly two years, the fourth consecutive month of strengthening demand.

According to IATA, global and international demand for air cargo, measured in cargo tonne-kilometres (CTK), increased by 8.3% and 8.1%, respectively, when compared to November 2022.

Global and international capacity, measured in available cargo tonne-kilometres (ACTK), was up 13.7% and 11.6%, respectively, when compared to the same month in 2022.

Most of the capacity growth continues to be attributable to the increase in belly capacity as international passenger markets continue their post- COVID recovery.

Compared to November 2019 (pre-COVID-19), demand is down 2.5% while capacity is up 4.1%.

Some indicators to note include:

- Both the manufacturing output and new export order Purchasing Managers Indexes (PMIs) – two leading indicators of global air cargo demand continued to hover just below the 50-mark in November with small positive movements indicating a deceleration of the economic slowdown.

- Global cross-border trade recorded growth for the third consecutive month in October, reversing its previous downward trend.

Cargo ULDs at HAN. Picture by Steven Howard of TravelNewsAsia.com

- Inflation in major advanced economies continued to soften in November as measured by the corresponding Consumer Price Index (CPI), centering around 3% year-on-year for the United States, Japan, as well as the EU, in November. In the meantime, China exhibited negative annual growth in its CPI for the second time in a row.

- Air cargo yields, including surcharges, continued their significant upward trend and increased 8.9% since October. Rising yields are in line with improving air cargo load factors over recent months. This could be tied in part to booming e-commerce deliveries from China to western markets.

“November air cargo demand was up 8.3% on 2022 - the strongest year-on-year growth in almost two years,” said Willie Walsh, IATA’s Director General. “That is a doubling of October’s 3.8% increase and a fourth month of positive market development. It is shaping up to be an encouraging year-end for air cargo despite the significant economic concerns that were present throughout 2023 and continue on the horizon.”

Asia-Pacific airlines saw their air cargo volumes increase by 13.8% in November 2023 compared to the same month in 2022. This performance was significantly above the previous month’s growth of 7.6%. Available capacity for the region’s airlines increased by 29.6% compared to November 2022 as more belly space came online with the removal of COVID19 restrictions.

North American carriers had the weakest demand growth in November with a 1.8% increase y-o-y in cargo volumes. This was, nonetheless, a significant improvement in performance compared to October’s -1.8% contraction. Capacity increased by 4% compared to November 2022.

European carriers saw their air cargo volumes increase by 6.7% in November compared to the same month in 2022. This was a stronger performance than in October (1%). Capacity increased 6.5% in November 2023 compared to 2022.

Middle Eastern carriers had the strongest performance in November 2023, with a 13.5% year-on-year increase in cargo volumes. This was similar to the significant improvement noted in the previous month’s performance (+13%). Capacity increased 15.4% compared to November 2022.

Latin American carriers experienced a 4.2% increase in cargo volumes compared to November 2022, very similar to the 4% year-on-year increase recorded for October. Capacity in November was up 7.7% compared to the same month in 2022.

African airlines saw their air cargo volumes increase by 3.9% in November 2023, slightly improved compared to October’s 2.9% growth performance. Capacity was 14% above November 2022 levels.

Latest exclusive video interviews: Future of Air Travel - Interview with Sumesh Patel, President of SITA Asia Pacific; Miss International Queen 2024 (MIQ 2024) - Interview with Alisa Phanthusak, MD, Tiffany's Show Pattaya, Thailand; 16 HD Video Interviews from Routes Europe 2024 in Aarhus, Denmark; 9 HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia; Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani, Executive Chairman; 9 Exclusive Video Interviews from ASEAN Tourism Forum 2024 in Vientiane, Laos; 8 NTO Press Conferences from ASEAN Tourism Forum 2024 in Vientiane, Laos; 13 HD Video Interviews from World Travel Market 2023 in London, England; 5 HD Video Interviews from APG World Connect 2023 in Monaco, France; and 15 HD Video Interviews from Routes World 2023 in Istanbul, Türkiye.