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Air cargo demand rose 8.3% in November 2023, according to the International Air Transport Association
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The 2023 global air cargo market saw its strongest year-on-year growth in two years
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Capacity was up 13.7% compared to Nov 2022 and +11.6% for international operations
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Capacity growth continues to be connected to the increase in belly capacity as international passenger markets continue their post-COVID recovery
Air cargo demand rose 8.3% in November 2023, with the 2023 global air cargo market showing the strongest year-on-year growth in roughly two years, according to the International Air Transport Association (IATA).
The latest data is “a doubling of October’s 3.8% increase and a fourth month of positive market development,” said Willie Walsh, IATA’s director general, in a statement.
“It is shaping up to be an encouraging year-end for air cargo despite the significant economic concerns that were present throughout 2023 and continue on the horizon,” added Walsh.
For international operations, demand growth for air cargo, measured in cargo tonne-kilometers, was up 8.1%.
Capacity, measured in available cargo tonne-kilometers, jumped 13.7% compared to November 2022 and was higher by 11.6% for international operations.
Capacity growth is connected to the increase in belly capacity as international passenger markets continue their post-COVID recovery, according to IATA.
Current demand, however, remains down 2.5%, while capacity is up 4.1% compared to the pre-COVID November 2019 period.
IATA took note of the following indicators:
- Both the manufacturing output and new export order Purchasing Managers Indexes (PMIs) – the leading indicators of global air cargo demand – continued to hover just below the 50-mark in November, with small positive movements indicating a deceleration of the economic slowdown.
- Global cross-border trade recorded growth for the third consecutive month in October, reversing its previous downward trend.
- Inflation in major advanced economies continued to soften in November as measured by the corresponding Consumer Price Index (CPI), centering around 3% year-on-year for the United States, Japan, as well as the EU, in November while China exhibited negative annual growth in its CPI for the second time in a row.
- Air cargo yields (including surcharges) continued their significant upward trend (+8.9% since October). Rising yields are in line with improving air cargo load factors over recent months. This could be tied in part to rising e-commerce deliveries from China to Western markets.
