Air Cargo Recovery In June Slower Than Expected, Says IATA

KUALA LUMPUR, July 29 (Bernama) -- The demand for global air freight showed improvement in June albeit at a slower pace than some of the traditional leading indicators would suggest, the International Air Transport Association (IATA) said. The trade association for the world’s airlines said global demand, measured in cargo tonne-kilometres (CTKs), fell by 17.6 per cent in June (-19.9 per cent for international operations) from the previous year. “That is a modest improvement from the 20.1% year-on-year drop recorded in May,” it said in a statement Tuesday. It said global capacity, measured in available cargo tonne-kilometres (ACTKs), shrank by 34.1 per cent in June (‑33.9 per cent for international operations) compared with the previous year. “This was on par with the 34.8 per cent year-on-year drop in May,” it said. It said belly capacity for international air cargo shrank by 70 per cent in June from the previous year due to the withdrawal of passenger services amid COVID-19. “This was partially offset by a 32 per cent increase in capacity through expanded use of freighter aircraft,” it said. Meanwhile, it said global manufacturing demand stabilised in June with the new export orders component of the Purchasing Managers Index (PMI) rising by 11 points compared to May, the strongest monthly increase since the series began in 1999. “The PMI tracking global manufacturing output rebounded in June to its highest level since January,” it added. Director-general and chief executive officer Alexandre de Juniac said cargo is, by far, healthier than the passenger markets but doing business remains exceptionally challenging. "While economic activity is re-starting after major lockdown disruptions, there has not been a major boost in demand,” he said. He said the rush to get personal protective equipment (PPE) to market has subsided as supply chains regularised, enabling shippers to use cheaper sea and rail options. “And the capacity crunch continues because passenger operations are recovering very slowly,” he added. -- BERNAMA