February 5, 2020
According to full-year 2019 data for global air freight markets released by the International Air Transport Association (IATA), total demand fell by 3.3% compared to 2018.
This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009 (when air freight markets contracted by 9.7%).
IATA says air cargo's performance in 2019 was dampened by weak growth in global trade of just 0.9%. The sector's underperformance was also due in particular to slowing GDP growth in manufacturing-intensive economies. Softer business and consumer confidence, along with falling export orders, also contributed to air freight struggles.
"Trade tensions are at the root of the worst year for air cargo since the end of the Global Financial Crisis in 2009. While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy" said Alexandre de Juniac, IATA's Director General and CEO. "With all the restrictions being put in place, it will certainly be a drag on economic growth. And, for sure, 2020 will be another challenging year for the air cargo business".