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Mideast carriers lead air cargo demand pick-up in June: IATA

MIDDLE East air carriers posted the big gains in cargo of all regions for the 16th straight month in June - eight per cent year on year, according to the latest International Air Transport Association (IATA) data.

Mideast's international freight growth rate was 6.5 per cent up for the first half, but that fell short of the 14.3 per cent average gain at the same time last year.

Around half of this slowdown is accounted for by slower (albeit still rapid) growth on the North America朚iddle East route, reported Doha's Gulf Times.

But slower growth on the routes between the Middle East and Asia and Europe appears to be more a function of broader weakness in the global demand backdrop, the report.

The three big Gulf Cooperation Council (GCC) airlines of the Gulf comprise of Qatar Airways, Emirates and Etihad.

IATA data for global air freight demand in June 2016 showed a rise in freight tonne kilometres (FTK) of 4.3 per cent year-on-year. This was the fastest pace of growth in 14 months.

Freight capacity measured in available freight tonne kilometres (AFTKs) increased by 4.9 per cent year-on-year, keeping yields under downward pressure.

Freight demand increased year-on-year in June across all regions with the exception of Latin America which recorded a 9.8 per cent decrease, compared to the same period last year.

The latest data point to an improvement from the weak conditions seen earlier this year. Q1, 2016 was weak even after allowing for the distortions associated with the timing of Chinese New Year, as well as from the one-off boost to air freight in early-2015 from seaport disruption on the US west coast.

Said IATA director general Tony Tyler: "June saw an improvement in demand for air freight. That's good news. However, we cannot read too much into one month's performance.

"Air cargo markets have been in the doldrums for several years during which there were several false starts on indications for improvement," said Mr Tyler, former CEO of Hong Kong's Cathay Pacific. "Global economic growth remains sluggish, world trade volumes continue to trend downwards."