Executive Briefings

Air Cargo Flies High As E.U. Airports Post Bumper Numbers

Starting with the latest numbers from IATA, which wrap up the reporting on November's performance, the upward trend in air cargo has been confirmed once again. Global airfreight markets registered high demand, measured in freight tonne kilometers (FTKs), that rose by 6.8 percent in November 2016, compared to the same month in the previous year.

Air Cargo Flies High As E.U. Airports Post Bumper Numbers

"Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will continue into 2017," said Alexandre de Juniac, IATA's director general and CEO. He also pointed to "the shipment of high-value consumer electronics and their component parts" as a factor in offsetting stagnant global trade, which IATA has warned about in previous statements.

De Juniac’s concerns are well founded. As an indicator, cross-border trade between the United States and its NAFTA partners, Canada and Mexico, slipped another 3.6 percent to $93.2bn in October 2016, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

On the aviation side, North American freight volumes expanded 5.6 percent, year-over-year, in November 2016, according to IATA, and capacity increased by 2.6 percent, y-o-y. That suggests that air cargo is bucking the regional trend, however, de Juniac warned that it was, “critically important for the air cargo industry to continue to improve its value offering by implementing modern customer-centric processes.”

Delta Air Lines, however, failed to catch the momentum, with its December cargo volumes falling another 3.5 percent, y-o-y, and its annual losses weighing in at a dismal 9.7 percent.

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"Air cargo enjoyed a strong peak season in November. And there are encouraging signs that this growth will continue into 2017," said Alexandre de Juniac, IATA's director general and CEO. He also pointed to "the shipment of high-value consumer electronics and their component parts" as a factor in offsetting stagnant global trade, which IATA has warned about in previous statements.

De Juniac’s concerns are well founded. As an indicator, cross-border trade between the United States and its NAFTA partners, Canada and Mexico, slipped another 3.6 percent to $93.2bn in October 2016, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

On the aviation side, North American freight volumes expanded 5.6 percent, year-over-year, in November 2016, according to IATA, and capacity increased by 2.6 percent, y-o-y. That suggests that air cargo is bucking the regional trend, however, de Juniac warned that it was, “critically important for the air cargo industry to continue to improve its value offering by implementing modern customer-centric processes.”

Delta Air Lines, however, failed to catch the momentum, with its December cargo volumes falling another 3.5 percent, y-o-y, and its annual losses weighing in at a dismal 9.7 percent.

Read Full Article

Air Cargo Flies High As E.U. Airports Post Bumper Numbers