Air Cargo Demand Strengthens In July

KUALA LUMPUR, Sept 6 (Bernama) -- Demand for global air cargo registered positive growth in July this year, with freight tonne kilometers (FTKs) up five per cent, the fastest pace in almost 18 months. In a statement, the International Air Transport Association (IATA) said available freight tonne kilometers (AFTKs), on the other hand, increased by 5.2 per cent year-on-year, outstripping demand and keeping yields under pressure. IATA Director-General and Chief Executive Officer, Alexandre de Juniac said July was a positive month for air freight. "Despite the positive growth, we must recognise that we face some strong headwinds on fundamental aspects of the business. "Global trade growth is sluggish, business confidence is weak and the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalisation," he added. For the month under review, IATA said the strongest growth occurred in Europe and the Middle East, with July demand up by 7.2 per cent and 6.7 per cent respectively, compared to the same period last year. The positive European performance corresponds with an increase in export orders in Germany over the last few months. While the growth rate of Middle Eastern carriers' was still strong, it had eased to half the 14 per cent recorded annually between 2012 and 2015. This is, attributed to slower freight growth between the Middle East and Asia. Asia-Pacific airlines, on the other hand, reported a 4.9 per cent increase in demand for air cargo in July compared to last year, driven by strong increases in the large "within Asia" market. --BERNAMA