Following a 5.7-percent fall in volume in 2019, the air cargo industry faces another challenging year in 2020 due to global trade tensions as well as the impact of flight restrictions arising from the novel coronavirus acute respiratory disease outbreak.
Data from the International Air Transport Association (IATA) showed Asia-Pacific carriers in December experienced a 3.5 percent decline in volume compared to the same period a year earlier. Capacity increased by 2.8 percent.
Full-year volume fell 5.7 percent, the largest decrease of any region, while capacity increased by 1.1 percent.
IATA attributed the decline to international trade tensions and the global growth slowdown which weighed heavily on regional air freight volumes in 2019.
Within-Asia freight ton kilometers (FTKs) were particularly affected, down 8 percent compared to a year before.
Last year, IATA said global air freight measured in FTKs fell 3.3 percent compared to 2018 while airline freight ton kilometer capacity (AFTK) rose 2.1 percent.
This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009 when air freight markets contracted by 9.7 percent.
Air cargo performance in 2019 was dampened by weak growth in global trade of just 0.9 percent. The sector’s underperformance was also due in particular to slowing GDP (gross domestic product) growth in manufacturing-intensive economies. Softer business and consumer confidence, along with falling export orders, also contributed to air freight struggles, according to IATA
Alexandre de Juniac, IATA director-general and chief executive officer, said the trade tensions are at the root of the worst year for air cargo since the end of the global financial crisis in 2009.
“While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy.
With all the restrictions being put in place, it will certainly be a drag on economic growth. And, for sure, 2020 will be another challenging year for the air cargo business,” De Juniac said.
“There are signs that confidence and orders could pick up in 2020. It is too early to say what long-term effects will be seen from the impact of restrictions associated with combating the coronavirus outbreak.” he added.
All markets except Africa suffered volume declines in 2019.
Asia-Pacific retained the largest share of FTKs, at 34.6 percent. The share of freight traffic increased modestly for both North America and Europe, to 24.2 percent and 23.7 percent, respectively. Middle East carriers’ traffic share held steady at 13 percent. Africa and Latin America saw their shares lift marginally, to 1.8 percent and 2.8 percent.
Three domestic carriers, Philippine Airlines, Cebu Pacific and AirAsia Philippines have suspended the operation in China, Macau and Hong Kong in compliance with the government directives to combat the spread of coronavirus.
IATA represents 290 airlines comprising 82 percent of global air traffic.
