Tough Year for Air Cargo, IATA Says
Worldwide air cargo dropped 1.5% for the full year 2012, said the International Air Transport Association. IATA said it was the second consecutive year of cargo decline, following a 0.6% contraction in 2011. The freight load factor for the year was 45.2%. IATA Director General Tony Tyler said air cargo "suffered a one-two punch" in 2012: "World trade declined sharply. And the goods that were traded shifted towards bulk commodities more suited for sea shipping." Freight capacity grew just 0.2% over the year, and the freight load factor was 45.2%, IATA said.
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Asia-Pacific airlines (the largest players in the air cargo market) reported a 5.5% decline in demand and cut capacity by 2.4%. European carriers had a fall in freight demand of 2.9% and North American carriers of 0.5%. European carriers increased their capacity by 0.3% which led to the load factor falling to 47.2%. North American carriers managed to reduce capacity by 2.0%, ahead of the fall in demand, but it still left the region's freight load factor at 35.0%, the second weakest of any region, according to the report (here).