The International Air Transport Association (IATA) reports that demand in global air freight markets decreased by 1.4% in February compared to the same period in 2019. When IATA adjusts the comparison for the impact of the Lunar New Year, which fell in February in 2019, and the leap year in 2020, which meant an additional day of activity, seasonally-adjusted demand was down 9.1% month-on-month in February.

IATA says that by February, the negative impacts of the COVID-19 crisis on air cargo demand were becoming visible. Manufacturing production in China, one of the world's largest air cargo markets, dropped sharply due to widespread factory closures and travel restrictions.

Significant cargo capacity was lost as a result of airlines reducing passenger operations in response to government travel restrictions due to COVID-19, severely impacting global supply chains.

"The spread of COVID-19 intensified over the month of February, and with it, the impact on air cargo. Adjusted demand for air cargo fell by 9.1%. Asia-Pacific carriers were the most affected with a seasonally-adjusted drop of 15.5%. What has unfolded since is a story of two halves. The disruption of global supply chains led to a fall in demand. But the dramatic disruption in passenger traffic resulted in even deeper cuts to cargo capacity. And the industry is struggling to serve remaining demand with the limited capacity available," said Alexandre de Juniac, IATA's Director General and CEO.

"We only got a first glimpse of this in February. Among all the uncertainty in this crisis, one thing is clear-air cargo is vital. It is delivering lifesaving drugs and medical equipment. And it is supporting global supply chains. That's why it is critical for governments to remove any blockers as the industry does all it can to keep the global air cargo network functioning in the crisis and ready for the recovery."

 

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