Middle Eastern carriers’ year-on-year freight volumes increased 16.3 per cent in March 2017 and capacity increased 2.7 per cent, recent data showed.

According to March 2017 demand growth results for global air freight markets released by the International Air Transport Association (Iata), international freight volumes increased 16.4 per cent year-on-year in March – the fastest pace since June 2015. Seasonally-adjusted freight volumes maintained their upward trend.

The year-on-year growth rate has recovered after having moderated in late-2015 and is now back in line with the long-run average. Demand remains strong between the Middle East and Europe but traffic to Asia has weakened.

Airlines in Europe (23.5 per cent) and Asia-Pacific (37.5 per cent) posted the strongest growth accounting for two-thirds of the industry-wide increase in demand.

The remaining growth was split between North American (20.7 per cent) and Middle Eastern carriers (13.9 per cent), with African (1.6 per cent) airlines making a modest contribution.

Latin American airlines experienced a contraction in demand of 4.2 per cent in March 2017 compared to the same period in 2016. Capacity decreased by 1.9 per cent over the same period.

Global air freight markets showed a 14 per cent expansion measured in freight tonne kilometers (FTKs) compared to the same period last year. This was the fastest pace of growth recorded since October 2010. Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 4.2 per cent year-on-year in March 2017.

March performance contributed to very strong first quarter (Q1) growth in freight volumes. After adjusting for the impact of the leap year in 2016, freight demand in Q1 2017 increased by nearly 11 per cent. Capacity increased by 3.7 per cent over the same period (leap year adjusted).

The strengthening of air freight demand in March is consistent with an uptick in world trade and a six-year high in new export orders. An increase in the shipment of silicon materials typically used in high-value consumer electronics shipped by air, is also likely underpinning a portion of the strong performance.
 
"March capped a robust first quarter with the strongest year-on-year air freight growth in six-and-a-half years. Optimism is returning to the industry as the business stabilizes after many years in the doldrums. There is, however, still much lost ground to recover while facing the dual headwinds of rising fuel and labor costs. It remains critical to use the improvement in the industry’s fortunes as an opportunity to enhance the value offering by implementing modern customer-centric initiatives that streamline processes and reduce costs," said Alexandre de Juniac, Iata’s director general and CEO. - TradeArabia News Service