A new International Air Transport Association (IATA) report maintains 2019 represented the first year of declining freight volumes since 2012 and the weakest performance since the 2009 global financial crisis.
“Trade tensions are at the root of the worst year for air cargo since the end of the Global Financial Crisis in 2009,” Alexandre de Juniac, IATA’s director general and CEO, said. “While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy. With all the restrictions being put in place, it will certainly be a drag on economic growth. And, for sure, 2020 will be another challenging year for the air cargo business.”
IATA officials said the data for global air freight markets revealed demand, measured in freight ton kilometers (FTKs), declined by 3.3 percent compared to 2018 while capacity (AFTK) increased by 2.1 percent.
Last year’s air cargo performance was dampened by weak growth in global trade of 0.9 percent, officials noted, adding the sector’s underperformance was also due in particular to slowing GDP growth in manufacturing-intensive economies.
Other contributing factors to air freight challenges outlined in the report included softer business and consumer confidence, as well as falling export orders.