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December 07, 2017
IATA expects global air freight to grow by 4.5% in 2018
The International Air Transport Association (IATA) forecasts global industry net profit to continue to rise in 2018. According to IATA the air cargo business continues to benefit from a strong cyclical upturn in volumes, with some recovery in yields.
Volumes are expected to grow by 4.5% in 2018 (down from the 9.3% growth of 2017). The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes to grow at twice the pace of the expansion in world trade (4.3%).
Cargo yields are expected to improve by 4.0% in 2018 (slower than the 5.0% in 2017). While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in 2018.
IATA says cargo revenues will continue to do well in 2018, reaching $59.2 billion (up 8.6% from 2017 revenues of $54.5 billion).
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