Iata says airfreight continues to flatline in May
The International Air Transport Association (Iata) has released figures for global air cargo markets showing that growth continued to flatline in May, broadly following the trend of the last 18 months. Global freight tonne kilometres increased by just 0.8% in May compared to a year ago. Capacity, however, increased by 2.1% causing load factors to fall to 44.9% - their lowest level since the post crisis recovery. As about 60% of global air cargo utilizes capacity in passenger aircraft bellies, managing capacity at a time when growth in air travel is outpacing that of cargo is particularly challenging. The stall in cargo markets appears to be the result of a recent softening in growth in developing economies, including China. Moreover, business confidence is flat globally and declining in some developing economies, meaning chances of a significant upturn in the near future is unlikely.