June Global Air Cargo Volume Announced: Stable and Resilient

show that demand is stable and dynamic.

global demand, as measured by cargo ton-kilometers (CTKs *), is 6.4 percent below the June 2021 level (-6.6 percent for international business). This is an improvement from a 8.3 percent year-on-year decline in May. Global demand in 1H20 was 4.3 percent below 2021 levels (-4.2 percent for international business). Half-year demand increased by 2.2 percent compared to pre-COVID levels (2019).

capacity increased by 6.7 compared to June 2021 (international operations increased by 9.4). That's up from the 2.7 percent year-on-year growth recorded in May. Capacity increased by 4.5 percent in the first half of the year compared to the first half of 2021 (international business grew by 5.7 percent). Demand grew by 2.5 per cent compared to pre-COVID levels.

air cargo performance is affected by a number of factors

• Trade activity increased slightly in June as the Omicron lockdown in China eased. Emerging regions (Latin America and Africa) also contributed to the growth with stronger volumes.

• new export orders, a leading indicator of freight demand and world trade, saw declines in all markets except China.

• Ukraine continues to erode cargo capacity serving Europe, as several Russian and Ukrainian airlines are major cargo players.

"Air cargo demand in the first half of 2022 was 2.2 percent higher than pre-epidemic levels (first half of 2019). This is a strong performance, especially given the ongoing supply chain constraints and the loss of capacity due to the war in Ukraine. The current economic uncertainty has little impact on air cargo demand, but developments need to be closely monitored in the second half of the year," said Willie Walsh, director general of IATA.

vs same month 2021, June 2022Asia Pacific Airlinesfell 2.1 percent. That's a significant improvement from a 6.6 percent decline in May. Demand in the first half of the year was 2.7 per cent below the level in 2021. Airlines in the region were severely affected by a drop in trade and manufacturing activity due to China's Omicron-related lockdown, but this continued to ease in June as the restrictions were lifted. Available capacity in the region fell by 6.2 percent compared to June 2021. This results in capacity in the first half of 2022 being 0.2 per cent below 2021 levels.

North American AirlinesJune 2022 is down 6.3 percent. Demand in the first half of the year was 3.3 per cent below the level in 2021. High inflation is affecting the region. Asia-North America market demand decline, Europe-North America market began to decline. Capacity increased 5.6 percent in June 2022 compared to June 2021 and 6.1 percent in the first half of 2022.

European AirlinesJune 2022 is down 13.5 percent. This is the worst performance of all regions. However, there was a slight improvement from last month's performance, which saw the biggest drop in demand since early 2022. This is due to the war in Ukraine. Labor shortages and reduced manufacturing activity in Asia due to Omicron also affected output. Capacity increased by 5.6 in June 2022 compared to June 2021. Demand in the first half was 7.8 percent below 2021 levels, while capacity was 3.7 percent above 2021 levels.

Middle East Airlinesfreight traffic fell 10.8 percent in June from a year earlier. Significant benefits from traffic diverted to avoid overflights over Russia failed to materialize. Compared with June 2021, capacity increased by 6.7. Demand in the first half was 9.3 percent below the 2021 level, the weakest first half performance of all regions. 1H20 capacity was 6.3 percent above 2021 levels.

Latin American Airlines, freight traffic in June 2022 increased by 19.6 percent compared to June 2021. This is the strongest performance of any region. Airlines in the region have shown optimism by introducing new services and capacity and, in some cases, investing in additional air cargo aircraft in the coming months. Compared to the same month in 2021, production capacity increased by 29.5 in June. Demand in the first half of the year was 21.8 per cent higher than the 2021 level, and capacity in the first half of the year was 32.6 per cent higher than the 2021 level. This was the strongest performance of any region in the first half of the year.

African Airlinesfreight volume in June 2022 increased by 5.7 percent. Like those in Latin America, airlines in the region are showing optimism by adding capacity. The capacity is 10.3 percent higher than the June 2021 level. Demand in the first half of the year was 2.9 percent higher than the 2021 level, and capacity in the first half of the year was 6.9 percent higher than the 2021 level.

• In terms of CTK, the regional freight market share of each operator is 32.4 per cent in Asia Pacific, 22.9 per cent in Europe, 27.2 per cent in North America, 13.4 per cent in the Middle East, 2.2 per cent in Latin America and 1.9 per cent in Africa.