Airline News
IATA: Q3 cargo market continues improving
September 23rd 2014
The International Air Transport Association (IATA) has released its Q3 2014 Cargo Market Analysis. Read More »
Volumes continued to show solid gains year-on-year, supported by economic improvements in some regions, but the high cost of fuel and overall weakness in yields kept cargo financial performance from improving so far this year, IATA said.
Capacity growth is also an issue. With an expected 14% increase in 2014 of deliveries of new twin-aisle aircraft with belly hold capacity, IATA said there could be downward pressure on aircraft utilization ahead.
The airline trade association said emerging Asia trade volumes have rebounded after a weak first quarter and consumers in the U.S. were more optimistic about future economic performance, supporting growth in demand for air-freighted commodities like semi-conductors.
“However, in Europe consumer confidence and trade activity have weakened due to the Russia-Ukraine crisis, which could weaken air freight demand in months ahead. Business confidence continues to point to expansion, but rates of improvements are still weaker than 2013 year-end,” the IATA report stated.
