Middle Eastern carriers saw air freight demand expand by 3.2 per cent and capacity rise 9.5 per cent in May 2016 compared to the same period last year, new data showed.

Despite carriers in the region reporting the fastest growth in aggregate, demand conditions have weakened considerably, according to global air freight data released by the International Air Transport Association (Iata).

Annual growth in May 2016 was one-fifth of the pace registered in May 2015. This reflects both an easing in network expansion by the region’s main carriers over the past six months and weak trading conditions.  

Global freight demand decreased or flat lined in May across all regions with the exception of Europe and the Middle East. These regions recorded growth in air cargo volumes of 4.5 per cent and 3.2 per cent, respectively, in May, compared to the same period last year.

Broad weakness in world trade volumes, which have largely tracked sideways since the end of 2014, accounts for about 80 per cent of air freight’s sluggish performance.

The data also showed that demand measured in freight tonne kilometers (FTKs) slowed in May with growth falling to 0.9 per cent year-on-year. Yields remained pressured as freight capacity measured in available freight tonne kilometers (AFTKs) increased by 4.9 per cent year-on-year.  

“Global trade has basically moved sideways since the end of 2014 taking air cargo with it. Hopes for a stronger 2016 are fading as economic and political uncertainty increases. Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief,” said Tony Tyler, Iata’s director general and CEO. - TradeArabia News Servoce