Air cargo demand up 8.7pc for Middle East carriers

May 28, 2014 - 12:41:34 pm

MONTREAL: Carriers based in the Middle East have reported a 8.7 percent growth in demand for air cargo movement, according to latest data released by the International Air Transport Association (IATA).

The trade association that represents worlds 240 airlines or 84 percent of the total air traffic, said, "This is slightly slower growth compared to previous months, but still the strongest growth of any region."

It attributed the growth to the upswing in developed economies, and increased volumes from emerging markets in Asia and Africa which led to capacity growth by 8.1 percent.

In other regional analyses, IATA said, Asia-Pacific carriers saw cargo demand grow by 5.2 percent year-on-year and capacity rose 7.8 percent.

Ongoing sluggishness in Chinese manufacturing activity is likely to impact on air-freight demand in coming months, and export volumes in emerging Asian markets have been in continuous decline throughout 2014.

European airlines saw demand for air cargo fall by 0.7 percent compared to April 2013, as trade activity leveled off.

GDP growth in the Eurozone was just 0.2 percent in the first quarter. However, indicators look positive for a stronger second quarter. Capacity was up just 0.2 percent.

North American carriers posted year-on-year growth in demand of 2.6 percent.The latest data show a rebound in trade volumes to and from the US and underlying growth trends in business activity are positive. This could boost air-freight growth in future months. Capacity was down 0.8 percent, IATA said. (QNA)