Global demand, measured in cargo tonne-kilometers (CTKs), fell 3.4% in June compared to June 2022, -3.7% for international operations according to International Air Transport Association (IATA) data released for June 2023 global air cargo markets reflecting smallest year-over-year contraction in demand since February 2022.
For the half year, demand slid 8.1% compared to the January-June period of 2022 (-8.7% for international operations). However, demand in June was only 2.4% below June 2019 levels.
Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 9.7% compared to June 2022, which was a slower rate compared to the double-digit growth recorded between March and May. This reflects strategic capacity adjustments airlines are making amid a weakened demand environment.
“We remain hopeful that the difficult trading conditions for air cargo will moderate as inflation eases in major economies. This, in turn, could encourage the central banks to loosen the money supply, which could stimulate greater economic activity,” commented Willie Walsh, director general, IATA.
Asia-Pacific airlines saw their air cargo volumes decrease by 3.6% in June 2023 compared to the same month in 2022 owing to weak demand on within-Asia markets, although the Asia-North America trade lane saw improved performance. Available capacity in the region increased by 24.4% compared to June 2022. Looking at the first half of 2023, cargo demand was down 6.5% versus the year-ago period against a 27.0% rise in capacity.
North American carriers had a 6.5% decrease in total cargo volumes in June 2023 compared to the same month in 2022, marking the fourth consecutive month in which the region had the weakest performance.
European carriers experienced a 2.8% decrease in cargo volumes in June 2023, compared to the same month in 2022 while Middle Eastern carriers posted a 0.5% increase in cargo volumes in June 2023 versus a year ago. This was a strong turnaround from the 2.9% year-over-year decline registered in May.
Latin American carriers had strongest performance in June 2023, with a 7.3% increase in cargo volumes compared to June 2022 and African airlines posted a 2.8% decrease in demand compared to June 2022.