Geneva, Jan 31: The International Air Transport Association (IATA) has revealed a substantial rebound in global air freight markets for 2023, with a notable surge in the final quarter, as reported in recent data. Despite the shadow of economic uncertainties, the air cargo sector showed resilience, with year-end demand figures closely trailing those of the previous year and the pre-pandemic era.
The report highlighted a slight contraction of 1.9 per cent in full-year demand compared to 2022, with a more pronounced decrease of 3.6 per cent when set against 2019’s figures. However, the capacity for 2023 painted a different picture, marking a significant increase from the previous year and a modest rise from pre-COVID levels.
December 2023, in particular, stood out with an exceptional performance, recording the highest annual growth rate over the past two years. This upswing was accompanied by substantial growth in capacity, surpassing the levels seen in the same period in 2022.
Economic indicators painted a mixed picture. Global cross-border trade showed signs of recovery, while inflation rates in major economies like the United States and the EU remained under control. However, a persistent deflationary trend in China’s Consumer Price Index (CPI) raised concerns about a potential economic slowdown.
The air cargo sector’s performance varied across regions.
The Asia-Pacific airlines reported a slight increase in demand and a significant surge in capacity for 2023.
However, North American carriers experienced the most substantial decline in demand for the year. European carriers also reported a decrease in demand, while the Middle East, Latin America, and Africa showed diverse trends, with Latin America posting the strongest year-on-year performance among all regions.
The disruption in maritime routes through the Red Sea in the latter part of the year led to a modest increase in global air cargo demand and yields, highlighting the industry’s adaptability and critical role in ensuring the continuity of the global economy amid extraordinary circumstances.
IATA’s Director General, Willie Walsh, commented on the sector’s performance, acknowledging the recovery from the downturn experienced in 2022 and the positive trajectory as the market moves towards stabilization.
However, he also cautioned about the potential impact of ongoing geopolitical and economic challenges on the air freight sector in the upcoming year.
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