Middle East carriers’ freight volumes record slower rise in September

Middle East carriers’ freight volumes rose 8.9 percent in September while capacity increased 2.6 percent, but were slower compared with the previous month’s expansion rates, the International Air Transport Association (IATA) said on Wednesday.
“A short-lived weak patch in demand in Q3 2016 has meant that recent months have produced volatility in the year-on-year growth rate,” IATA said, although seasonally-adjusted international freight volumes have continued to trend upwards at a rate of 8 percent over the past six months.
“Still, strong competition, particularly on the Asia-Europe route, means that Middle East carriers are not seeing as healthy a pickup in the seasonally-adjusted traffic trend as carriers in other regions,” the global aviation body said.
Global air freight demand – measured in freight ton kilometers – rose 9.2 percent last month from a year ago, the slowest pace recorded for the past five months but still significantly faster compared with the five-year
average growth rate of 4.4 percent.
Meanwhile, freight capacity – measured in available freight ton kilometers – went up by 3.9 percent in September compared with the same month last year, much slower than the pace of demand growth. This is positive for industry load factors, yields, and financial performance.
“Demand for air cargo grew by 9.2 percent in September. While that’s slower than in previous months, it remains stronger than anything we have seen in recent memory. But there are signs that this demand spurt may have peaked. So it becomes even more important to reinforce the industry’s competitiveness by accelerating the modernization of its many antiquated processes,” Alexandre de Juniac, IATA’s director General and chief executive, said in a statement.
IATA has forecast a 7.5 percent growth in air freight demand for 2017, and noted a “significant upside potential even if the peak of the economic cycle has passed.”
Freight volumes of Asia-Pacific airlines increased by 9.3 percent while capacity expanded 5.3 percent on strong demand to, from and within the region because strong export order books in Taiwan, China and Japan.
North American carriers posted an increase in freight volumes of 7.4 percent for the month, while capacity increased 1.4 percent. In Europe, air freight demand rose 10.3 percent and capacity increased 5.6 percent.
Concerns that the recent strengthening of the euro might have affected the region’s exporters have not materialized, IATA said.
Latin American airlines meanwhile saw demand grow 7.6 percent in September and capacity increase by 5.9 percent. African carriers recorded the largest year-on-year increase in demand of all regions, with freight volumes rising 17.7 percent.
Demand has been boosted by very strong growth on the trade lane to and from Asia, which increased by more than 67 percent in the first eight months of the year, the aviation body said.
However the upward trend in seasonally-adjusted volumes has flattened in recent months, IATA added.

Source:Arabnews