The International Air Transport Association (IATA) has released March 2022 data for global air cargo markets showing a drop in demand.
African airlines saw cargo volumes increase by 3.1% in March 2022 compared to March 2021. Capacity was 8.7% above March 2021 levels.
The association attributed the decline to the effects of Omicron in Asia, the Russia-Ukraine war and a challenging operating backdrop contributed to the decline.
However, the report showed that African airlines saw cargo volumes increase by 3.1 per cent in March 2022 compared to March 2021. Capacity was 8.7 per cent above March 2021 levels.
It said global demand, measured in cargo tonne-kilometers (CTKs), fell 5.2 per cent compared to March 2021 (-5.4 per cent for international operations).
It stated that war in Ukraine led to a fall in cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players.
Sanctions against Russia led to disruptions in manufacturing. And rising oil prices are having a negative economic impact, including raising costs for shipping.
Furthermore, it aid global goods trade has continued to decline in 2022, with China’s economy growing more slowly because of COVID-19 related lockdowns (among other factors); and supply chain disruptions amplified by the war in Ukraine.
“Air cargo markets mirror global economic developments. In March, the trading environment took a turn for the worse. The combination of war in Ukraine and the spread of the Omicron variant in Asia have led to rising energy costs, exacerbated supply chain disruptions, and fed inflationary pressure.
“As a result, compared to a year ago, there are fewer goods being shipped—including by air. Peace in Ukraine and a shift in China’s COVID-19 policy would do much to ease the industry’s headwinds. As neither appears likely in the short-term, we can expect growing challenges for air cargo just as passenger markets are accelerating their recovery,” IATA’s director general, Willie Walsh said.
Region-by-region performances showed that Asia-Pacific airlines saw their air cargo volumes decrease by 5.1 per cent in March 2022 compared to the same month in 2021.
Available capacity in the region fell 6.4 per cent compared to March 2021, the largest drop of all regions.
“The zero-COVID policy in mainland China and Hong Kong is impacting performance,” the report stated.
North American carriers posted a 0.7 per cent decrease in cargo volumes in March 2022 compared to March 2021.
Demand in the Asia-North America market declined significantly, with seasonally adjusted volumes falling by 9.2 per cent in March while capacity was up 6.7 per cent compared to March 2021.
European carriers saw a 11.1 per cent decrease in cargo volumes in March 2022 compared to the same month in 2021.
“This was the weakest of all regions,” said IATA while attributing the development to the war in Ukraine.
Middle Eastern carriers experienced a 9.7 per cent year-on-year decrease in cargo volumes in March.
Significant benefits from traffic being redirected to avoid flying over Russia failed to materialise.
Latin American carriers reported an increase of 22.1 per cent in cargo volumes in March 2022 compared to the 2021 period.
“This was the strongest performance of all regions,” the report stated adding that “some of the largest airlines in the region are benefitting from the end of bankruptcy protection.”
Capacity, according to the report was up 34.9 per cent in March compared to the same month in 2021.
