Air cargo capacity above pre-Covid level

The International Air Transport Association (IATA) released data for April 2023 global air cargo markets marking the first time in three years that the capacity has surpassed pre-COVID levels.

Capacity (measured in available cargo tonne-kilometers, ACTK) was up 13.4 percent compared to April 2022 and 3.2 percent compared to April 2019.

“The strong uptick is driven by belly capacity as demand in the passenger business recovers. Freighter capacity declined 2.3 percent. Preighter operations ceased in March,” reads the release.

Willie Walsh, IATA DG: "The industry is adjusting itself to the implications of the recovery in passenger demand. Preighter operations stopped in Mar and freighter services were scaled back in April.”

Meanwhile, global demand, measured in cargo tonne-kilometers (CTKs), fell 6.6 percent compared to April 2022 (-7.0 percent for international operations).

China’s PMI level surpassed the critical 50-mark indicating that demand for manufactured goods from the world’s largest export economy is growing.

Global goods trade increased by 0.2 percent in March, marking the first annual increase since November 2022.

The April headline Consumer Price Index recorded rates of 5% in the US, .3% in China, and 3.5% in Japan. While Europe was higher (8.1%), it is well below its 11.5% Oct 2022 peak.

Walsh: “Tapering inflation is definitely a positive. But the degree and speed at which that could lead to looser monetary policies that might stimulate demand is unclear.”

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