African airlines saw 1.6 per cent year-on-year demand growth for air cargo in October 2024, making it the slowest among regions globally, data released by the International Air Transport Association (IATA) revealed.
However, the data showed that the global air cargo demand measured in Cargo Tonne-Kilometers (CTKs), rose by 9.8 per cent compared to October 2023 levels for a 15th consecutive month of growth.
IATA in its statistics made public on Tuesday, said that while the African continent recorded the slowest demand cargo growth, its capacity increased by 7.7 per cent year-on-year.
Also, IATA said that capacity, measured in Available Cargo Tonne-Kilometers (ACTKs), increased by 5.9 per cent compared to October 2023 (7.2 per cent for international operations).
According to IATA, this was largely driven by an 8.5 per cent increase in international belly capacity.
It said dedicated freighter capacity increased by 5.6 per cent, the seventh consecutive month of growth with volumes nearing 2021 peak levels in the period under review.
Oher regional performances, indicated that Asia-Pacific airlines saw 13.4 per cent year-on-year demand growth for air cargo in October, while capacity increased by 9.3 per cent year-on-year.
Also, North American carriers saw 9.5 per cent year-on-year demand growth for air cargo in October, while capacity increased by 5.8 per cent year-on-year.
Besides, European carriers saw 7.6 per cent year-on-year demand growth for air cargo in October and capacity increased 3.9 per cent year-on-year.
Middle Eastern carriers saw 4.5 per cent year-on-year demand growth for air cargo in October and capacity increased 0.8 per cent year-on-year.
Latin American carriers saw 18.5 per cent year-on-year demand growth for air cargo in October, making it the strongest growth among the regions, while its capacity increased 5.8 per cent year-on-year.
Commenting on the report, Willie Walsh, IATA’s Director-General, said that air cargo markets continued their strong performance in October, with demand rising 9.8 per cent year-on-year and capacity up 5.9 per cent.
He added: “Global air cargo yields (including surcharges) continue to rise, up 10.6 per cent on 2023 and 49 per cent on 2019 levels. While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution.
“The incoming Donald Trump administration’s announced intention to impose significant tariffs on its top trading partners—Canada, China and Mexico—has the potential to upend global supply chains and undermine consumer confidence. The air cargo industry’s proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds.”
Walsh noted that several factors in the operating environment should also be considered.
For instance, he expressed that year-on-year, industrial production rose 1.6 per cent in September while global goods trade increased 2.4 per cent for a sixth consecutive month of growth.
The increase in trade, IATA said was partly due to businesses stockpiling inventory ahead of potential disruptions, like the US port strike.
Global manufacturing activity rebounded in October; the association also observed.
The Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark, indicating growth.
However, the PMI for new export orders, remained below the 50-mark, suggesting ongoing uncertainty and weakness in global trade.
US headline inflation, based on the annual Consumer Price Index (CPI), rose by 0.17 percentage points to 2.58 per cent in October, ending a six-month decline.
In the same month, the inflation rate in the European Union (EU) increased by 0.24 percentage points to 2.33 per cent.
China’s consumer inflation fell to 0.29 per cent in October, sparking concerns of an economic slowdown.