Air freight decline in August

The International Air Transport Association (IATA) announced traffic results for August. While passenger demand was up 4.5% over the previous August, this represents a significant slowing from the 6.0% recorded in July. The decline in freight markets accelerated. The 3.8% contraction in freight markets recorded in August was more than double the pace of July’s 1.8% decline.

“The industry has shifted gears downward. The pace of growth in passenger markets has dipped and the freight business is now shrinking at a faster pace. With business and consumer confidence continuing to slump globally there is not a lot of optimism for improved conditions any time soon,” said Tony Tyler, IATA’s Director General and CEO.

Comparisons of July to August more clearly indicate the slowdown. The total passenger market fell by 1.6% in August compared to July. International markets declined by 1.8%, while already weak domestic markets shrank by 1.0%. The total cargo market fell by 1.3%.

Passenger load factors were high at 81.4%, almost as high as in July. While this is close to historically high levels reflecting the industry’s ability to efficiently allocate capacity, it too showed weakness, falling by 1.3% compared to July.