IATA'S latest quarterly Cargo Market Analysis.
Key points:
- Air freight volumes continue to show solid gains on a year ago, supported by economic improvements in some regions;
- But high jet fuel prices and overall weakness in yields has kept cargo financial performance from improving so far this year;
- Emerging Asia trade volumes have rebounded after weakness in Q1 and consumers in the US are more optimistic;
- These developments have supported growth in demand for air-freighted commodities like semi-conductors;
- However, in Europe consumer confidence and trade activity have weakened due to the Russia-Ukraine crisis;
- Business confidence continues to point to expansion, but rates of improvements are still weaker than 2013 year-end;
- And although jet fuel prices have eased slightly, they remain high at about $120/bb;
- On the positive side, although yields remain weak overall they appear to be stabilizing and are up slightly on a year ago;
- This could help reduce downward pressure on cargo financial performance in months ahead;
- Consistent with more supportive demand conditions in some regions, cargo heads surveyed in July expect growth in traffic and yields to pick-up during the year ahead.
View full report (pdf)