November 30, (THEWILL) – The International Air Transport Association (IATA) has released data for October 2022 global air cargo markets, showing that African airlines saw cargo volumes decrease by 8.3% in October 2022, compared to October 2021.
This was a significant decrease in the growth recorded the previous month (0.1%). Capacity was 7.4% below October 2021 levels
The International aviation body also disclosed that headwinds have continued to affect air cargo demand globally.
According to IATA, global demand, measured in cargo tonne-kilometres, fell 13.6% compared to October 2021 (-13.5% for international operations).
The body stated further that capacity was 0.6% below October 2021.
This was the first year-on-year contraction since April 2022, however, month-on-month capacity increased by 2.4% in preparation for the year-end peak season. International Cargo capacity, however, grew 2.4% compared to October 2021.
The data indicated several factors in the operating environment, one of which is the prevalence of new export orders, adding that “such development is a leading indicator of cargo demand, which is shrinking in all markets except China and South Korea, which registered slightly higher new export orders in October.
“Latest global goods trade figures showed a 5.6% expansion in September, a positive sign for the global economy. This is expected to primarily benefit maritime cargo, with a slight boost to air cargo as well.
“The US dollar has seen a sharp appreciation, with the broad real effective exchange rate in September 2022 reaching the highest level since 1986. A strong dollar affects air cargo. As many costs are denominated in dollars, the currency’s appreciation adds another layer of cost on top of high inflation and high jet fuel prices”, it stated.
Others are the fact that the Consumer Price Index increased slightly in G7 countries in October and remains at a decades’ high level of 7.8%. Inflation in producer (input) prices reduced by 0.5 percentage points to 13.3% in September.
Commenting, Willie Walsh, IATA’s Director General, said, “Air cargo continues to demonstrate resilience as headwinds persist. Cargo demand in October while tracking below the exceptional performance of October 2021, saw a 3.5% increase in demand compared to September.
“This indicates that the year-end will still bring a traditional peak-season boost despite economic uncertainties, but as 2022 closes out, it appears that the current economic uncertainties will follow into the New Year and need continued close monitoring”, IATA informed.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
