African carriers in the lead as global air cargo demand continues strong growth in double-digit

The International Air Transport Association (IATA) has released its latest data for February 2024, showcasing a robust expansion in global air cargo markets, marking the third consecutive month of double-digit year-on-year demand growth. 

With African airlines leading the charge with a staggering 22.0 per cent year-on-year demand growth, the industry remains resilient amidst ongoing economic and political uncertainties.

African carriers witnessed remarkable growth, with intra-Africa trade lanes showing a remarkable 42.3 per cent year-on-year surge in demand. 

This surge in demand was complemented by a substantial increase in capacity, which soared by 28.2 per cent year-on-year.

Globally, total demand, measured in cargo tonne-kilometers (CTKs), surged by 11.9 per cent compared to February 2023 levels, with international operations registering an even more impressive growth rate of 12.4 per cent. 

This growth significantly outpaced the expansion in cross-border trade, which stood at a modest 0.9 per cent, indicating the vital role of air cargo in facilitating global trade flows.

Willie Walsh, Director-General of IATA, remarked on the industry’s resilience, stating, “February’s demand growth of 11.9 per cent far outpaced the 0.9 per cent expansion in cross-border trade. 

“This strong start for 2024 could see demand surpass the exceptionally high levels of early 2022. It also shows air cargo’s strong resilience in the face of continuing political and economic uncertainties.”

Despite a slight slowdown compared to January, Asia-Pacific airlines continued to exhibit significant growth, with a year-on-year demand increase of 11.9 per cent. 

This growth, however, was attributed to the expected slowdown post-Lunar New Year celebrations. 

Meanwhile, North American carriers saw a modest 4.2 per cent year-on-year demand growth, the weakest among all regions, with capacity increasing by 1.9% year-on-year.

European carriers witnessed robust demand growth of 14.6 per cent year-on-year, with intra-European air cargo leading the surge at 24.5 per cent – the strongest performance in almost three years.

Notably, the Europe–Middle East routes saw a remarkable 39.3 per cent year-on-year growth, emphasising the region’s strategic importance in facilitating trade flows.

Middle Eastern carriers also experienced substantial growth, with a 20.9 per cent year-on-year increase in demand. 

The Middle East–Europe market emerged as the strongest performer, with a remarkable 39.3 per cent growth rate. 

Latin American carriers saw a commendable 13.7 per cent year-on-year demand growth, with capacity increasing by 8.9 per cent year-on-year.

The increase in capacity was largely attributed to the recovery in passenger markets, with international belly capacity witnessing a significant 29.5 per cent year-on-year increase, far exceeding the growth in freighter capacity, which saw a modest 3.2 per cent year-on-year uptick.

As the global economy continues to navigate through uncertainties, the resilience and adaptability of the air cargo industry remain evident, as shown in IATA’s report.