Global air cargo demand now stable but capacity remains constrained

September 2, 2020

The International Air Transport Association (IATA) released data for global air freight markets in July showing air cargo demand is stable but at lower levels than 2019.

While there is some month-to-month improvement, it is at a slower pace than some of the traditional leading indicators would suggest. This is due to the capacity constraint from the loss of available belly cargo space as passenger aircraft remain parked.

Belly capacity for international air cargo shrank by 70.5% in July compared to the previous year. This was partially offset by a 28.8% increase in capacity through expanded use of freighter aircraft.

Global demand fell by 13.5% in July (-15.5% for international operations) compared to the previous year. That is a modest improvement from the 16.6% year-on-year drop recorded in June.

"Economic indicators are improving, but we have not yet seen that fully reflected in growing air cargo shipments. That said, air cargo is much stronger than the passenger side of the business. And one of our biggest challenges remains accommodating demand with severely reduced capacity. If borders remain closed, travel curtailed and passenger fleets grounded, the ability of air cargo to keep the global economy moving will be challenged," said Alexandre de Juniac, IATA's Director General and CEO.

Source: IATA