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June 12, 2018

Global air freight growth recovered slightly in April

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 4.1% in April 2018, compared to the same period the year before. This was up from the 1.8% growth in annual demand recorded in March 2018.

IATA says the pace at which demand is growing, however, remains significantly slower than in much of 2017.

The weaker growth in air cargo is primarily due to the end of the restocking cycle, during which businesses rapidly increase their inventory to meet unexpectedly high demand. This is consistent with demand drivers moving away from the highly supportive levels seen last year.

"April saw a strengthening from the abrupt slowdown in growth experienced in March. This is good news. We remain cautiously optimistic that demand will grow in the region of 4% this year. But the forecast appears to have increasing downside potential. Oil prices continue to rise as does protectionist rhetoric. Borders open to people and to trade drive economic growth and social prosperity. We are all disadvantaged when they are closed," said Alexandre de Juniac, IATA's Director General and CEO.

Source: IATA