The International Air Transport Association (IATA) released data for January 2023 global air cargo markets, showing that air cargo demand declined as economic headwinds persist.
Global demand, measured in cargo tonne-kilometres (CTKs), fell 14.9 percent compared to January 2022 (-16.2 percent for international operations).
Capacity – measured in available cargo tonne-kilometres (ACTK) – was up 3.9 percent, compared to January 2022. This was the first year-on-year growth in capacity since October 2022. International cargo capacity increased 1.4 percent, compared to January 2022. The uptick in ACTKs reflects the strong recovery of belly capacity in passenger airline markets offsetting a decline in international capacity offered by dedicated freighters.
Several factors in the operating environment should be noted:
- The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, increased in January for the first time since October 2022. For major economies, new export orders are growing; and in China and the US, PMI levels are close to the critical 50-mark, indicating that demand for manufactured goods from the world’s two largest economies is stabilising.
- Global goods trade decreased by 3 percent in December, this was the second monthly decline in a row.
- The Consumer Price Index for G7 countries decreased from 7.4 percent in November to 6.7 percent in January. Inflation in producer (input) prices reduced by 2.2 percentage points to 9.6 percent in December.
“With January cargo demand down 14.9 percent and capacity up 3.9 pecent, 2023 began under some challenging business conditions. That was accompanied by persistent uncertainties, including war in Ukraine, inflation, and labour shortages. But there is solid ground for some cautious optimism about air cargo. Yields remain higher than pre-pandemic times. And China’s much faster than expected shift from its zero COVID policy is stabilising production conditions in air cargo’s largest source market. That will give a much-needed demand boost as companies increase their engagement with China,” said Willie Walsh, IATA’s Director-General.
| Air cargo market in detail – January 2023 (% year-on-year) | |||||||||
| World | January 2023 (% year-on-year) | ||||||||
| share1 | CTK | ACTK | CLF (%-pt)2 | CLF (level)3 | |||||
| TOTAL MARKET | 100.0% | -14.9% | 3.9% | -9.9% | 44.8% | ||||
| Africa | 2.0% | -9.5% | -1.8% | -3.8% | 43.9% | ||||
| Asia Pacific | 32.4% | -19.0% | 8.8% | -15.5% | 45.2% | ||||
| Europe | 21.8% | -20.4% | -9.3% | -7.5% | 54.1% | ||||
| Latin America | 2.7% | 4.6% | 34.4% | -9.3% | 32.5% | ||||
| Middle East | 13.0% | -11.8% | 9.6% | -10.0% | 41.1% | ||||
| North America | 28.1% | -8.7% | 2.3% | -5.1% | 42.3% | ||||
| 1% of industry CTKs in 2022 | 2Year-on-year change in load factor | 3Load factor level | |||||||
January regional performance
African airlines saw cargo volumes decrease by 9.5 percent in January 2023 compared to January 2022. But this was an improvement in performance compared to the previous month (-10 percent). Capacity was 1.8 percent, below January 2022 levels.
Asia-Pacific airlines saw their air cargo volumes decrease by 19 percent in January 2023 compared to the same month in 2022. This was, however, an improvement in performance compared to December (-21.2 percent). Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to the residual effects of COVID restrictions that were imposed by China. Additionally, the positioning of the Lunar New Year would have impacted cargo volumes in January. Available capacity in the region increased by 8.8 percent compared to January 2022.
North American carriers posted an 8.7 percent decrease in cargo volumes in January 2023 compared to the same month in 2022. This was also a slight decrease in performance compared to December (-8.5 percent). Capacity increased 2.3 percent compared to January 2022.
European carriers saw the weakest performance of all regions with a 20.4 percent decrease in cargo volumes in January 2023 compared to the same month in 2022. This was a decrease in performance compared to December (-19.4 percent). Airlines in the region continue to be most affected by the war in Ukraine. Capacity decreased 9.3 percent in January 2023 compared to January 2022.
Middle Eastern carriers experienced a 11.8 percent year-on-year decrease in cargo volumes in January 2023. This was an improvement on the previous month (-14.4 percent). Capacity increased 9.6 percent compared to January 2022.
Latin American carriers reported a 4.6 percent increase in cargo volumes in January 2023 compared to January 2022. This was the strongest performance of all regions, and a significant improvement in performance compared to December, which saw no growth. Capacity in January was up 34.4 percent compared to the same month in 2022.
