In August 2023, the global air cargo market, as the International Air Transport Association (IATA) reported, experienced its first year-on-year growth (1.5%) since February 2022. This growth is measured in cargo tonne-kilometers (CTKs) and was slightly stronger for international operations (2%). Available cargo tonne-kilometers (ACTKs) also surged, with a 12.2% increase compared to August 2022 (11.8% for global operations). This increase was mainly due to a 30% expansion in belly capacity as airlines expanded operations during the peak northern summer travel season.
Critical points in the operating environment include:
– The Purchasing Managers Index (PMI) for manufacturing output and new export orders in August improved slightly. Still, it remained below the critical threshold of 50, indicating a continued decline in global manufacturing production and exports.
– Global cross-border trade contracted for the fourth consecutive month in July, reflecting cooling demand and general economic conditions.
– Inflation exhibited mixed trends in August, with US consumer prices rising for the second month, while Europe, Japan, and China experienced different inflationary pressures.
Willie Walsh, Director General of IATA, noted the positive year-on-year growth but highlighted the need to interpret this growth in the context of a low base in 2022 and mixed market signals. Despite uncertainties, there’s optimism in the PMI data trending positively as the traditional year-end peak season for air cargo approaches.
August Regional Performance
– Asia-Pacific Airlines saw a 4.9% increase in air cargo volumes in August 2023 compared to the same month in 2022, driven by significant trade lanes like Europe-Asia and Middle East-Asia.
– North American carriers experienced a 1.2% decrease in air cargo volumes in August, showing improvement from the previous month.
– European carriers saw a slight decline of 0.2% in air cargo volumes in August, an improved performance compared to July.
– Middle Eastern carriers achieved a 1.4% year-on-year increase in cargo volumes in August 2023.
– Latin American carriers had the most robust performance, with a 6.2% increase in cargo volumes.
– African airlines had the weakest performance in August 2023, with a 4.7% decline in cargo volumes.
Latin America Air Freight Market Sample Report 2023-2028
The Latin America air freight market reached a valuation of USD 21.4 billion in 2022, with projections indicating a promising future. It is expected to grow at a compound annual, reaching an estimated value of USD 30.9 billion. The market analysis encompasses various Latin America Air Freight Market components beyond just air freight carriers.
Market Dynamics
– Latin America’s economic revival has increased demand for air freight services, especially perishable goods and electronics.
– The rapid growth of e-commerce fuels the need for efficient air cargo logistics.
– Air freight plays a critical role in global supply chains, ensuring on-time delivery of goods, including pharmaceuticals and high-value electronics.
– The transport of pharmaceuticals and medical supplies by air has grown substantially due to the ongoing pandemic.
– Investments in upgrading and modernizing airport cargo facilities strengthen the industry.
Market Opportunities
– Rising demand for temperature-controlled logistics, particularly for vaccines and fresh produce, offers growth prospects.
– Embracing eco-friendly air cargo solutions can attract environmentally conscious clients.
– Innovations in last-mile air delivery solutions can streamline the supply chain for e-commerce businesses.
– Expanding services to handle various types of cargo, including oversized items and heavy machinery, can attract new clients.
– Cooperation among Latin American nations can enhance regional air freight networks.
Latin America Air Freight Carriers Market Analysis
The Latin America Air Freight Industry is expected to grow from USD 1.00 billion in 2023 to USD 1.23 billion by 2028, at a CAGR of 4.22% during the forecast period (2023-2028). This analysis focuses on the revenue generated by air freight carriers within the Latin America Air Freight Industry.
Source 1: https://www.iata.org/en/pressroom/2023-releases/2023-10-03-02/
