Travel Industry News at TravelNewsAsia.com since 1997
Thu, 2 December 2021

Global Demand for Air Cargo Continues to Grow; Up 10.4% in October

(02 Dec 2021)  IATA's October 2021 data for global air cargo markets shows that demand continued to be well above pre-COVID19 levels and that capacity constraints have eased slightly.

Global demand, measured in cargo tonne-kilometers (CTKs), was up 9.4% compared to October 2019 (+10.4% for international operations).

Capacity constraints have eased slightly but remain 7.2% below pre-COVID19 levels (-8.0% for international operations).

Economic conditions continue to support air cargo growth but are slightly weaker than in the previous months. Several factors should be noted:

- Supply chain disruptions and the resulting delivery delays have led to long supplier delivery times. This typically results in manufacturers using air transport, which is quicker, to recover time lost during the production process. The global Supplier Delivery Time Purchasing Managers Index (PMI) reached an all-time low of 34.8 in October; values below 50 are favorable for air cargo.

DHL Airbus A330 reg: D-AEAC Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.
DHL Airbus A330 reg: D-AEAC Picture by Steven Howard of TravelNewsAsia.com

- Relevant components of the October PMIs (new export orders and manufacturing output) have been in a gradual slowdown since May but remain in favorable territory.

- The inventory-to-sales ratio remains low ahead of the peak year-end retail events such as Christmas. This is positive for air cargo as manufacturers turn to air cargo to rapidly meet demand.

- Global goods trade and industrial production remain above pre-crisis levels.

- The cost-competitiveness of air cargo relative to that of container shipping remains favorable.

October data reflected an overall positive outlook for air cargo, said Willie Walsh, IATAs Director General. Supply chain congestion continued to push manufacturers towards the speed of air cargo. Demand was up 9.4% in October compared to pre-crisis levels. And capacity constraints were slowly resolving as more passenger travel meant more belly capacity for air cargo. The impact of government reactions to the Omicron variant is a concern. If it dampens travel demand, capacity issues will become more acute. After almost two years of COVID19, governments have the experience and tools to make better data-driven decisions than the mostly knee-jerk reactions to restrict travel that we have seen to date. Restrictions will not stop the spread of Omicron. Along with urgently reversing these policy mistakes, the focus of governments should be squarely on ensuring the integrity of supply chains and increasing the distribution of vaccines.

Asia-Pacific airlines saw their international air cargo volumes increase 7.9% in October 2021 compared to the same month in 2019. This was close to a doubling in growth compared to the previous months 4% expansion. The improvement was partly driven by increased capacity on Europe-Asia routes as several important passenger routes reopened. Belly capacity between the continents was down 28.3% in October, much better than the 37.9% fall in September. International capacity in the region eased slightly in October, down 12.9% compared to the previous year, a significant improvement over the 18.9% drop in September.

North American carriers posted an 18.8% increase in international cargo volumes in October 2021 compared to October 2019. This was on par with Septembers performance (18.9%). Demand for faster shipping times and strong US retail sales are underpinning the North American performance. International capacity was down 0.6% compared to October 2019, a significant improvement from the previous month.

European carriers saw an 8.6% increase in international cargo volumes in October 2021 compared to the same month in 2019, an improvement compared to the previous month (5.8%). Manufacturing activity, orders and long supplier delivery times remain favorable to air cargo demand. International capacity was down 7.4% compared to pre-crisis levels, a significant improvement from the previous month which was down 12.8% on pre-crisis levels.

Middle Eastern carriers experienced a 9.4% rise in international cargo volumes in October 2021 versus October 2019, a significant drop in performance compared to the previous month (18.4%). This was due to a deterioration in traffic on several key routes such as Middle East-Asia, and Middle East-North America. International capacity was down 8.6% compared to October 2019, a decrease compared to the previous month (4%).

Latin American carriers reported a decline of 6.6% in international cargo volumes in October compared to the 2019 period, which was the weakest performance of all regions, but an improvement compared to the previous month (a 17% fall). Capacity in October was down 28.3% on pre-crisis levels, a decrease from September, which was down 20.8% on the same month in 2019.

African airlines saw international cargo volumes increase by 26.7% in October, a deterioration from the previous month (35%) but still the largest increase of all regions. International capacity was 9.4% higher than pre-crisis levels, the only region in positive territory, albeit on small volumes.

Headlines: Asia Pacific Airlines Report Robust Growth in Passenger Demand; Soft Cargo Markets  Silk Way West Airlines Orders Two Airbus A350 Freighters  Mercure Pakenham to Open in September  Rolls-Royce Invests in Hydrogen Power with 54% Stake in Hoeller Electrolyzer  Plaza Premium to Begin Providing Passenger Services at Hong Kong Airport  Embraer Doubles Hangar Space at Sorocaba Service Center in São Paulo  Germany Begins Gradual Transformation to SAF for Operational A400M Fleet  American Airlines Establishes the Elise Eberwein Pilot Scholarship  Hotel Revenue: Sabre Completes Initial Phase of SynXis Retail Studio Rollout  Cross Signs Two Resorts in Lombok, Indonesia  IATA Urges Governments to Work with Aviation Industry to Ensure Safe Rollout of 5G  SAS Warns Customers of Possible Flight Disruptions by Potential Pilot Strike  IHG Signs Franchise Agreement for First InterContinental Hotel in Albania  Qatar Airways Signs Codeshare Agreement with Airlink  Kai-Oliver Kauder Joins Phuket Marriott Resort Nai Yang Beach as Executive Chef  Canon Expands Partnership with World Rugby  Marriott Signs 2,200 Rooms Across 8 Hotels in Vietnam  Malaysia Airlines to Launch KUL-HND Flights; Expands Codeshare with JAL  SITA to Upgrade Air Traffic Communications at Airports in Poland  Embraer Signs Firm Order for up to 10 Embraer E-Jets Passenger to Freight Conversions  Korean Air Renews CEIV Pharma Certification with IATA  Cyprus Orders Six H145Ms for National Guard  Incentives Needed to Increase SAF Production  IHG Signs First InterContinental Hotel in Uzbekistan  Pictures from Miss International Queen 2022 Transgender Beauty Pageant in Pattaya, Thailand  HD Video Interviews from Miss International Queen 2022 in Pattaya, Thailand  Siam@Siam Design Hotel Pattaya - HD Video Interview with Clive Nagington  How Winning Miss International Queen 2020 Changed My Life - Interview with Valentina Fluchaire  IHG Signs Luxury Hotel in Penang, Malaysia  Dusit Appoints Gilles Cretallaz as Chief Operating Officer  7-Eleven Singapore Partners Tiger Beer for Innovative Beachfront Store on Sentosa  Thai AirAsia Launches BKK - KUL Flights  US-Bangla Airlines Signs Distribution Agreement with Travelport  Thai Airways to Launch Flights to Jeddah, Saudi Arabia  Braathens Flies ATR 72-600 with 100% SAF in Both Engines  Air Canada to Launch Bangkok Flights; Resume Mumbai Service  Qantas A380 Resumes SIN-LHR Flights; First Class Lounge at Changi Reopens  Randy Shimabuku Appointed GM of Two Four Seasons Resorts in Bali, Indonesia  Rosewood Signs Urban Resort in Xi'an, China  China Airlines Unveils Network Expansion Plan  IHG Partners Unilever to Replace Bathroom Miniatures with Larger Bottles/Dispensers  Mehmet Tevfik Nane Becomes Chair of IATA Board; Turkey to Host AGM in 2023  Etihad Increases Flights to London Heathrow and Dublin; Returns to LHR T4  Qantas and Airbus to Accelerate Establishment of SAF Industry in Australia  Cathay Pacific Expands Distribution Strategy with Sabre  Pamela Ong Appointed GM of Courtyard by Marriott Phuket Town  Qatar Airways Group Reports Record Profit  Centara Targets Thai Vietjet Passengers with Promotion  Hong Kong Airport Reports May 2022 Cargo and Passenger Traffic  SITA Partners Alstef Group to Launch Self-Bag Drop Solution  SalamAir Launches Flights Between Muscat and Bursa, Turkey  Global Hotel Occupancy Surpasses 2019 Levels for First Time  Marriott Bonvoy Redesigns and Upgrades Mobile App on Android  Cebu Pacific to Resume Singapore - Mactan Service; Double SIN-MNL Flights  E-Wallet Added to airasia Super App in Malaysia  HD Video Interviews from Thailand Yacht Show 2022 in Jomtien, Pattaya  Cathay Pacific Reports May 2022 Cargo and Passenger Traffic  Boeing Unveils Latest ecoDemonstrator Test Aircraft  Yotel to Offer Guests Urban Jungle's Hair and Bodycare Amenities  Four Seasons Hotel des Bergues Geneva Launches Masterclass in the Art of Floristry  Miss International Queen 2022 - Interview with Alisa Phanthusak, MD of Tiffany's Show Pattaya  AirAsia X Expands Network; Teases Plan to Launch London, Dubai and Istanbul Flights  Marriott Expands Homes & Villas Collection to Australia and New Zealand  IATA Appoints Dr. Xie Xingquan as Regional Vice President - North Asia  Swire Hotels to Implement G3 Revenue Management System from IDeaS  Airbus A321XLR Takes Maiden Flight; Targets Entry into Service for Early 2024  SITA to Provide Skyports with Technology for Vertiport Testbed Near Paris  United Airlines Adds More Plant-Based Food Options to Menu  Family Fun in Jomtien, Pattaya - Interview with Dmitry Chernyshev, GM of Mövenpick Siam Hotel  Mandarin Oriental to Take Over Luxury Alpine Resort in Italy  Scoot Opens Ticket Sales on Flights to Tokyo and Osaka, Japan  Sounds Air to Enhance Global Distribution with Amadeus Travel Platform  Royal Australasian College of Surgeons to Host Scientific Congress in Christchurch  Airbus Launches Airspace Link HBCplus Connectivity Solution for Airlines  CWT Expands Sales Team with Six Appointments  Aeromexico Connect Testing Embraer's Beacon Platform  Is Siam Seaplane Ready for Take Off? Interview with Dennis Keller, Chief Business Officer  Christian Poda Returns to Hong Kong as GM and RVP of Four Seasons  Jetstar Asia to Increase Singapore - Bangkok and Bali Flights  Rosewood to Manage Hotel Bauer in Venice, Italy  Cebu Pacific to Increase Flights Between Manila and Dubai  British Airways and American Express Enable Solo Travellers to Use Companion Vouchers  Kiri Hannifin to Join Air New Zealand as Chief Sustainability Officer  NHIndustries Signs NH90 Support Contract with NAHEMA  New CEO at Pattana Sports Resort - Interview with Bodintorn Juangroongruangkit  Westin Hotel Opens in Yokohama, Japan  Changi to Reopen T4 in September  Ivan Giles Returns to Four Seasons Langkawi as GM  Anantara's Banana Island Resort in Doha Reopens Surf Pool; Launches Whale Shark Excursions  IHG Opens Atwell Suites Denver Airport - Tower Road  Kansai Airports Partners Airbus to Study Use of Hydrogen in Aviation  Air Astana Wins Best Entertainment System and Inflight F&B in Central Asia Award  Korean Air to Resume Long-Haul Flights in July  Aviation: International RPKs Up 331.9% in April  Qantas to Increase Flights Between Broken Hill and Sydney  SITA to Trace and Repatriate Lost Items at Passenger Terminal Expo 2022  Cebu Pacific Continues to Expand International Network  Mike Douglass Joins CWT as TX Customer and Service Excellence Leader  IATA Reports Fall in Air Cargo Demand  Thales to Launch New Airport Security Scanner  Sport and Fitness Training at Pattana Sports Resort in Chonburi, Thailand - Interview  Trip Partners Chooose to Offer More Sustainable Travel Options  Qatar Executive to Install Air Ionisation System on G650ER Aircraft  Hatten Hotels Commits to Source Only Cage-Free Eggs by 2025  Air Astana Launches Almaty - Crete Flights  Idemia Expands Partnership with Changi Airport in Singapore  Falcon Aviation Services Aiming to Launch eVTOL Flights in Dubai  Bruce Morris and Philip Levinson Join KFS Hotel Capital as Advisory Board Members  Accor Opens The Sebel Twin Towns Coolangatta  Marriott Opens First Le Royal Méridien Hotel in Qatar  Michiel de Kleer Appointed GM of 512-Room Holiday Inn Singapore Atrium  Augustina Tandun Joins Renaissance Bali Uluwatu as DOSM  Google Cloud, AI, NDC and More - Airline Retailing Interview with Darren Rickey, Sabre  Travel Industry Interview with Kurt Ekert, President of Sabre  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2022 TravelNewsAsia.com