Air Freight Demand Falls Faster than Capacity, IATA Says
October air freight demand was 3.5% below the previous year level and declined 2.2% compared to September, said the International Air Transport Association. The freight load factor weakened to 46.1%, from 46.7% a year ago, it said. "Slowing world trade and weak business confidence are affecting demand for air travel," said IATA Director General Tony Tyler: "The rapid decline in freight traffic is outrunning the industry's ability to respond" by reducing capacity.
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According to IATA freight figures: Asia-Pacific carriers had a 6.8% decline in demand in October compared to October 2011, and capacity fell 4.6%. North American airlines had a 5.3% drop in demand, and a 5.4% reduction in capacity. European airlines had a 4.3% decline in traffic, with just a 1.7% decline in capacity. Middle Eastern carriers’ 13.4% rise in traffic came on an 8.6% rise in capacity, raising load factor 2 percentage points to 46.4%. Latin American airlines’ demand climbed 0.9% but there was an 8.6% hike in capacity that pushed load factor down 3 percentage points to 39.3%. African carriers saw a 0.5% decline in demand and a 2.7% rise in capacity. Load factor of 26.6% was the weakest for any region, IATA said.