IATA present you the latest quarterly Cargo Market Analysis
Key points:
- Air freight volumes are showing solid gains on a year ago, supported by improving trade growth in some regions;
- But weakness in load factors and yields continues to place downward pressure on financial performance;
- Emerging Asia trade volumes continue to rise and US consumers are the most confident they have been since the recession;
- These developments have supported 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;
- Moreover, there has been no increase in global business confidence for the past several months;
- This casts doubts over the strength of the global economic upturn and prospects for continued trade growth;
- There have been notable declines in jet fuel prices since mid-2014 which should help reduce airline costs;
- But yields continue to decline slowly, putting strain on financial performance, and could weaken further as new aircraft deliveries come into service in 2015;
- Cargo heard surveyed in October do not expected to see any improvement in yields during the year ahead, but they do anticipate continued growth in demand.
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