Asia-Pacific airlines saw air cargo volumes dip

11 Jan 2023 CW Team

When compared to the same month in 2021, air cargo volumes for Asia-Pacific carriers fell by 18.6% in November 2022.

This was the worst performance of all areas, according to the International Air Transport Association (IATA), and a drop from performance in October (minus 14.7 per cent).

Lower levels of trade and manufacturing activity, as well as delays in supply chains, as a result of China's mounting Covid cases, continue to influence airlines in the area. When compared to 2021, the region's capacity was 4.5% less available.

Data for the global air cargo markets for November 2022 were issued by IATA on Monday, and it showed that demand dipped as economic headwinds persisted. According to the report, global demand, as measured in cargo tonne-kilometers (CTKs), dropped 13.7% from November 2021.

(Minus 14.2 per cent for international operations). The capacity (calculated as the available cargo tonne-kilometers, or ACTK) was also 1.9% lower in November 2021. Since April 2022, this was the second time that the economy shrank year over year after the first month (in October).

According to the IATA, global cargo capacity declined by 0.1% when compared to November 2021.

However, when compared to pre-Covid-19 levels (November 2019), there was a smaller decline in demand overall (minus 10.1%), while capacity decreased by 8.8%.

"The customary peak month of November saw a decline in air cargo performance. Demand is largely steady from month to month, demonstrating resilience in the face of economic uncertainty.

However, there are conflicting market indications. Oil prices stabilised in November, inflation decreased, and there was a modest increase in the volume of products exchanged globally, among other positive factors. However, declining export orders internationally and an increase in COVID instances in China warrant close observation "Willie Walsh, the director general of IATA, stated.

According to the IATA data, new export orders worldwide, a key indicator of cargo demand, remained constant in October. Except for Germany, the US, and South Korea, where they increased, new export orders for big economies are declining. Given that many expenses are expressed in US dollars, the US dollar's fast appreciation has increased cost pressure. This also applies to jet fuel, which is already present in significant quantities.

When compared to the same month in 2021, air cargo volumes for Asia-Pacific carriers fell by 18.6% in November 2022. This was the worst performance of all areas, according to the International Air Transport Association (IATA), and a drop from performance in October (minus 14.7 per cent). Lower levels of trade and manufacturing activity, as well as delays in supply chains, as a result of China's mounting Covid cases, continue to influence airlines in the area. When compared to 2021, the region's capacity was 4.5% less available. Data for the global air cargo markets for November 2022 were issued by IATA on Monday, and it showed that demand dipped as economic headwinds persisted. According to the report, global demand, as measured in cargo tonne-kilometers (CTKs), dropped 13.7% from November 2021. (Minus 14.2 per cent for international operations). The capacity (calculated as the available cargo tonne-kilometers, or ACTK) was also 1.9% lower in November 2021. Since April 2022, this was the second time that the economy shrank year over year after the first month (in October). According to the IATA, global cargo capacity declined by 0.1% when compared to November 2021. However, when compared to pre-Covid-19 levels (November 2019), there was a smaller decline in demand overall (minus 10.1%), while capacity decreased by 8.8%. The customary peak month of November saw a decline in air cargo performance. Demand is largely steady from month to month, demonstrating resilience in the face of economic uncertainty. However, there are conflicting market indications. Oil prices stabilised in November, inflation decreased, and there was a modest increase in the volume of products exchanged globally, among other positive factors. However, declining export orders internationally and an increase in COVID instances in China warrant close observation Willie Walsh, the director general of IATA, stated. According to the IATA data, new export orders worldwide, a key indicator of cargo demand, remained constant in October. Except for Germany, the US, and South Korea, where they increased, new export orders for big economies are declining. Given that many expenses are expressed in US dollars, the US dollar's fast appreciation has increased cost pressure. This also applies to jet fuel, which is already present in significant quantities.

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