International air cargo growth was slowed in October by the worsening economic situation around theworld, IATA announced today.
Freight demand grew 3.6% in October compared to the same month in 2006 on capacity up 4.2%.This growth was down from the 5% year-on-year increase recorded in September, and partly reversesthe strong pick up of freight growth seen in mid-2007, the international airline association said.Year-to-date freight demand has risen 4.0% on capacity up 5.1%.
Referring to the factors behind the latest trend, IATA commented that economic volatility ishaving a more immediate effect on international air freight demand. Leading air freight indicatorssuch as semi-conductor shipments and global manufacturing business confidence levels have slowed inrecent months. Demand for air freight is still expected to grow, but at a slower pace for theremainder of the year, IATA said.
“The numbers show that the fourth quarter will be challenging. With weakeningconfidence levels in manufacturing businesses and slower semi-conductor shipments we have alreadyseen a slowdown in cargo growth from 5.0% in September to 3.6% in October,” said GiovanniBisignani, IATA Director General and CEO. “Air cargo is still expanding, but the industry hasshifted gears to a slower pace of growth.”
At a regional level, European carriers grew 2% and North America 0.6%, reflecting thestrength of competition from other modes of transport and slower US economic growth. Asia Pacificairlines saw a fall in growth rates, from 7% in September to 5.8% in October, partly due to slowergrowth in semi-conductor shipments.
Middle East carriers saw freight demand improve slightly to 9.0% in October, largelyreflecting increased capacity with new route development. Demand in Latin America (-7.4%) andAfrica (-9.3%) dropped sharply.
