Middle Eastern carriers’ year-on-year freight volumes increased 10.2 per cent in May, as compared to a sharp jump from the 3.1 per cent dip in April, according to figures released by the International Air Transport Association (Iata).

The recent swings in the growth rate appear to be mainly a reflection of the more volatile monthly data last year. Capacity increased 1.7 per cent. Seasonally-adjusted freight volumes maintained their upward trend. Demand between the Middle East and Europe remains strong, increasing 19 per cent so far this year but traffic to Asia has weakened, growing by just over 1 per cent.

African carriers’ posted the largest year-on-year increase in demand of all regions in May with freight volumes growing 27.6 per cent. Capacity increased by 14.7 per cent over the same time period. Demand has been boosted by very strong growth on the trade lanes to and from Asia which have increased by nearly 57 per cent so far this year. However seasonally adjusted growth has levelled off in recent months.

Data released by Iata showed that global air freight markets demand, measured in freight tonne kilometres (FTKs), grew 12.7 per cent in May 2017 compared to the year-earlier period. This was up from the 8.7 per cent annual growth recorded in April 2017 and is more than three times higher than the five year average growth rate of 3.8 per cent.

Freight capacity, measured in available freight tonne kilometres (AFTKs), grew by 5.2 per cent year-on-year in May 2017.

The continued growth of air freight demand is consistent with an improvement in world trade. This, in turn, corresponds with new global export orders remaining close to a six-year high in May. There are, however, some signs that the cyclical growth period may have peaked. The global inventory-to-sales ratio, for example, has started rising. This indicates that the period when companies look to re-stock inventories quickly, which often gives air cargo a boost, has ended.  Regardless of these developments, the outlook for air freight is optimistic with demand expected to grow at a robust rate of 8 per cent during Q3 2017.

"May was another good month for air cargo. Demand growth accelerated, bolstered by strong export orders. And that outpaced capacity growth which should be positive for yields. But the industry can’t afford to rest on its laurels. With indications that the cyclical growth period may have peaked, the onus is on the industry to improve its value proposition by accelerating process modernization and enhancing customer-centricity," said Alexandre de Juniac, Iata’s director general and CEO.

All regions, with the exception of Latin America, reported year-on-year double-digit increases in demand in May 2017.

Asia-Pacific airlines’ freight volumes expanded 11.3 per cent in May compared to the same period a year earlier and capacity increased by 6.2 per cent.

North American carriers posted an increase in freight volumes of 13.9 per cent in May, and a capacity increase of 4.1 per cent, while European airlines recorded a 15.0 per cent increase in freight volumes in May and a capacity increase of 5.7 per cent.

Latin American airlines experienced a growth in demand of 6.7 per cent in May 2017 compared to the same period in 2016. Capacity increased by 7.1 per cent over the same period. – TradeArabia News Service