Total air cargo demand last year significantly below 'extraordinary 2021' – IATA

8th February 2023 By: Rebecca Campbell - Creamer Media Senior Deputy Editor

International air cargo demand for the whole of 2022 was significantly down from its whole-of-2021 levels, but only a little below its levels for 2019 (the last full year before the Covid-19 pandemic), the International Air Transport Association (IATA) has reported. (IATA is the representative body of the global airline industry.)

Total demand in 2022 was 8% below that for 2021, but only 1.6% down on that in 2019. International demand last year was 8.2% down on the figure for 2021, and again only 1.6% less than in 2109. Total air cargo capacity in 2022 was, however, 3% higher than in 2021, but still 8.2% below 2019 levels. International air cargo capacity increased 4.5% last year, in relation to 2021, but was still 9% less than the figure for 2019.

Monthly air cargo demand last year tended below 2021 levels from March onwards. For the month of December, total air cargo demand was down 15.3% in comparison to December 2021, with international demand declining by 15.8%. Total air cargo capacity in December was 2.2% down, year-on-year (y-o-y), with the equivalent international figure being a decline of 0.5%. (No comparisons with December 2019 were given.)

“In the face of significant political and economic uncertainties, air cargo performance declined compared to the extraordinary levels of 2021,” highlighted IATA director-general Willie Walsh. “That brought air cargo demand to 1.6% below 2019 (pre-pandemic) levels. The continuing measures by key governments to fight inflation by cooling economies are expected to result in a further decline in cargo volumes in 2023 to -5.6% compared to 2019. It will, however, take time for these measures to bite into cargo rates. So, the good news for air cargo is that average yields and total revenues for 2023 should remain well above what they were pre-pandemic. That should provide some respite in what is likely to be a challenging trading environment in the year ahead.”

In terms of IATA’s regions, total air cargo demand last year varied considerably. For the whole of 2022, compared with all of 2021, regional performance was (from best to worst) – Latin America (+13.1%), Africa (-1.4%), North America (-5.1%), Asia-Pacific (-8.8%), the Middle East (-10.7%), and Europe (-11.5%). For the month of December, in y-o-y terms, the figures also varied substantially, although the order was different. The best performing region was again Latin America, with a y-o-y variation of 0.0% (yes, zero). But North America held second place, with -8.5%, followed by Africa (with -10%), the Middle East (-14.4%), Europe (-17.4%) and finally the Asia-Pacific (-21.2%).