Air cargo demand continues strong growth trend in May 2021, outlines IATA data
Posted: 8 July 2021 | International Airport Review | No comments yet
After air cargo demand reached the highest level since records began in March 2021, the strong growth trend has continued into May 2021, with an increase of 9.4 per cent.
The International Air Transport Association (IATA) has released May 2021 data for global air cargo markets, showing that demand continued its strong growth trend.
As comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted, all comparisons to follow are to May 2019, which followed a normal demand pattern.
Global demand, measured in cargo tonne-kilometres (CTKs), was up by 9.4 per cent compared to May 2019. Seasonally adjusted demand rose by 0.4 per cent month-on-month in May 2021, making it the 13th consecutive month of improvement.
Join us live: Shaping the Next Generation of Hold Baggage and Air Cargo Screening
Join us live for an insightful webinar on 11th December at 14:00 GMT, in collaboration with Smiths Detection, as we explore the strategic balance of operational efficiency, regulatory compliance, and sustainability in high-volume security environments.
This session offers a focused look into future-proofing your security strategy.
Key learning points
- Cost Reduction: Strategies to minimize bag travel time while simultaneously reducing operational costs.
- Regulatory Roadmap: Insights into the next wave of regulatory changes and their impact on future investment decisions.
- Sustainable Systems: Practical approaches to building sustainability into security systems and lowering the total cost of ownership (TCO).
- Scalable Solutions: Real-world examples of scalable systems supporting current airport growth and preparing for tomorrow.
Register now for expert insights, case studies, and actionable strategies on operational efficiency!
The pace of growth slowed slightly in May 2021 compared to April 2021, which saw demand increase by 11.3 per cent against pre-COVID-19 levels (April 2019). Notwithstanding, air cargo outperformed global goods trade for the fifth consecutive month.
North American carriers contributed 4.6 percentage points to the 9.4 per cent growth rate in May 2021. Airlines in all other regions except for Latin America also supported the growth.
Capacity remains constrained at 9.7 per cent below pre-COVID-19 levels (May 2019) due to the ongoing grounding of passenger aircraft. Seasonally adjusted capacity rose by 0.8 per cent month-on-month in May 2021 – the fourth consecutive month of improvement, indicating that the capacity crunch is slowly unwinding.
Underlying economic conditions and favourable supply chain dynamics remain supportive for air cargo:
- Global trade rose 0.5 per cent in April 2021
- The Purchasing Managers Indices (PMIs) – leading indicators of air cargo demand – show that business confidence, manufacturing output and new export orders are growing at a rapid pace in most economies
- The cost-competitiveness of air cargo relative to that of container shipping has improved. Pre-crisis, the average price of air cargo was 12 times more expensive than sea shipping. In May 2021, it was six times more expensive.
“Propelled by strong economic growth in trade and manufacturing, demand for air cargo is 9.4 per cent above pre-crisis levels. As economies unlock, we can expect a shift in consumption from goods to services. This could slow growth for cargo in general, but improved competitiveness compared to sea shipping should continue to make air cargo a bright spot for airlines while passenger demand struggles with continued border closures and travel restrictions,” said Willie Walsh, IATA’s Director General.
Join our free webinar: Beyond silos: How ecosystem thinking elevates the airport experience
In today’s complex aviation landscape, airports are moving beyond siloed operations to embrace a new era of collaboration. This webinar focuses on how leading airports are using ecosystem thinking to adapt, personalize, and continuously improve every touchpoint, boosting both passenger satisfaction and non-aeronautical revenue.
Date: 13 Nov | Time: 10:00 GMT
REGISTER NOW TO SECURE YOUR SPOT
Can’t attend live? No worries – register to receive the recording post-event.
Related topics
Aeronautical revenue, Air freight and cargo, Airport crisis management, Airside operations, Capacity, COVID-19
Chief Executive Officer
CEO
Chief Operating Officer
Head of Operations, Safety and Emergency
Chief Strategy Development Officer
Head of Operations
Airport General Manager
CEO
Chief Executive Officer