Global air freight demand is far above pre-crisis levels, according to figures given by the International Air Transport Association (IATA)
Global demand (CTKs*) increased 9.4% from October to November (10.4 percent for international operations).
In October 2019, capacity limitations were 7.2 percent lower than pre-COVID-19 levels (-8.0 percent for international operations).
The economy continues to sustain air freight growth, but at a slower pace. Several points to note:
PMIs (new export orders and manufacturing production) have been declining since May but remain in positive territory.
The inventory-to-sales ratio remains low ahead of major holiday retail events. This benefits air cargo since manufacturers use it to quickly meet demand.
GNP remains above pre-crisis levels.Air cargo remains cost-competitive with container transport.
A good forecast for air freight in October. Congestion in the supply chain pushed firms to use air cargo. In October, demand was 9.4% higher than pre-crisis levels. And more passengers meant greater belly capacity for goods, slowly easing capacity limitations. The Omicron variant’s impact on government is a concern. If it reduces travel demand, capacity difficulties worsen. COVID-19 has over two years of experience and resources to make better data-driven decisions than the primarily knee-jerk reactions to restrict travel shown so far. Restrictions will not stop Omicron spread. “Governments should focus on guaranteeing supply chain integrity and increasing vaccine distribution, as well as promptly correcting regulatory errors,” said IATA Director General Willie Walsh.