IATA recently released data for global air freight markets, showing a strong rebound in demand in 2023 despite economic uncertainties. The fourth quarter of 2023 was particularly strong, and overall demand for the year reached a level just slightly below that of 2022 and 2019.
The Middle East was one of the regions that saw an increase in demand, with a growth rate of 1.6% for both global and international operations in 2023. This was accompanied by a 13.5% increase in capacity for the region (+13.6% for international operations). In December, airlines in the Middle East recorded an impressive 18.3% increase in demand for both global and international operations compared to 2022, with a capacity increase of 17.7% during the same period.
In contrast, African carriers saw a decrease in demand of 1.8% (-2.0% for international operations) in 2023 compared to 2022. However, there was still a 5.6% increase in capacity for the region (+5.0% for international operations). In December, airlines in Africa had the weakest performance of all regions, with a 1.2% decrease in demand (-1.4% for international operations) compared to 2021. Capacity grew 7.4% (+6.8% for international operations) during the same period.
Willie Walsh, IATA’s director general, stated that despite challenges in politics and economics, the air cargo industry has regained ground lost in 2022 after the peak of the COVID pandemic in 2021. While full-year demand in 2023 was still 3.6% lower than pre-COVID levels, the significant strengthening in the last quarter is a positive sign that markets are stabilizing towards more normal demand patterns. This puts the industry in a strong position for success in 2024, but with ongoing instability in geopolitical and economic forces, we cannot take anything for granted in the months ahead.
Looking at other regions, Asia-Pacific airlines saw a 0.9% increase in demand in 2023 compared to 2022 (-1.4% for international operations), with a significant capacity increase of 28.5% (+16.6% for international operations). In December, airlines in the region had the best performance of all, with an 18.5% increase in demand (+15.4% for international operations) compared to 2022. Capacity also grew by 31.1% (+22.9% for international operations) during the same period.
On the other hand, North American carriers had the worst year-on-year performance, with a 5.7% decrease in demand in 2023 compared to 2022 (-4.3% for international operations). Capacity only increased by 0.3% (+2.7% for international operations) during the same period. In December, airlines in this region reported a 2.0% decrease in demand (+5.9% international operations) compared to 2022, with a capacity increase of 2.4% (+8.5% for international operations).
European airlines saw a 3.9% decrease in demand in 2023 compared to 2022 (-4.1% for international operations). However, there was a 4.5% increase in capacity for both global and international operations. In December, airlines in the region posted an 8.6% increase in demand (+8.7% for international operations) compared to 2022, with capacity growing by 7.4% (+7.5% for international operations). The ongoing war in Ukraine continues to have a significant impact on the aviation industry in Europe.
Finally, Latin American carriers had the strongest year-on-year performance, with a 2.0% increase in demand in 2023 compared to 2022 (+1.9% for international operations). Capacity also saw a significant increase of 13.2% (+16.9% for international operations). In December, airlines in this region saw a growth in demand of 6.4% (+6.3% for international operations) compared to 2021, with a 3.5% increase in capacity (+4.2% for international operations) during the same period.
In conclusion, while the air cargo industry has rebounded strongly in 2023, there are still challenges that lie ahead in 2024. The industry must continue to adapt and navigate through changing geopolitical and economic conditions to ensure sustained growth and success.
