The International Air Transport Association (IATA) has released data for November 2022 global air cargo markets showing that demand softened as economic headwinds persist.
Global demand, measured in cargo tonne-kilometers (CTKs), fell 13.7 per cent compared to November 2021 (-14.2 per cent for international operations).
Capacity (measured in available cargo tonne-kilometers, ACTK) was 1.9 per cent below November 2021. This was the second year-on-year contraction following the first last month (in October) since April 2022. International cargo capacity decreased 0.1% compared to November 2021.
Compared to pre-COVID-19 levels (November 2019), there was a smaller contraction in overall demand (-10.1 per cent), while capacity was down 8.8 per cent.
The US dollar has appreciated sharply, adding cost pressure as many costs are denominated in US dollars. This includes jet fuel, which is already at elevated levels.
The Consumer Price Index for G7 countries decreased from 7.8 per cent in October to 7.4 per cent in November, the largest month-on-month decline in 2022.Inflation in producer (input) prices reduced to 12.7% in November, its lowest level so far in 2022.
IATA’s Director General, Willie Walsh, said: “Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis. But market signals are mixed. November presented several indicators with upside potential: oil prices stabilized, inflation slowed and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising COVID cases are cause for careful monitoring,”
