July 10, (THEWILL) – The International Air Transport Association (IATA) has released the May 2022 data for global air cargo markets, indicating that the easing of Omicron restrictions in China helped to alleviate supply chain constraints and contributed a performance improvement in May.
IATA represents some 290 airlines comprising 83 per cent of global air traffic.
In the data, Willie Walsh, IATA’s Director-General stated that May offered positive news for air cargo, most notably because of the easing of some Omicron restrictions in China.
Walsh said, “On a seasonally adjusted basis, we saw growth (0.3 per cent) after two months of decline. The return of Asian production as COVID-19 measures eased, particularly in China, will support demand for air cargo. And the strong rebound in passenger traffic has increased belly capacity, although not always in the markets where the capacity crunch is most critical. But uncertainty in the overall economic situation will need to be carefully watched.
“Still in May, African airlines also had a 134.9 per cent rise in Revenue Passenger Kilometres (RPKs) flown versus a year ago. RPK is the standard measure of actual passenger traffic used in the air transport industry. In addition, May 2022 capacity was up 78.5 per cent and load factor climbed 16.4 per cent points to 68.4 per cent, the lowest among regions.
“The recovery in travel markets is no less than impressive. As we accelerate towards the peak summer season in the Northern Hemisphere, strains in the system are appearing in some European and North American hubs. Nobody wants to see passengers suffering from delays or cancellations. But passengers can be confident that solutions are being urgently implemented. Airlines, airports and governments are working together,however, standing up the workforce needed to meet growing demand will take time and require patience in the few locations where the bottlenecks are the most severe.
“In the longer term, governments must improve their understanding of how aviation operates and work more closely with airports and airlines. Having created so much uncertainty with knee-jerk COVID-19 policy flip-flops and avoiding most opportunities to work in unison, based on global standards, their actions did little to enable a smooth ramping-up of activity. And it is unacceptable that the industry is now facing a potential punitive regulatory deluge as several governments fill their post-COVID-19 regulatory calendars.
“Aviation delivers its best when governments and industry work together to agree and implement global standards. That axiom is as true post-COVID-19 as it was in the century before.”
Worldwide cargo growth started gradually as of January, but at a slower pace due to supply chain disruptions and capacity constraints, as deterioration in economic conditions for the sector dampened demand.
Global demand, measured in cargo tonne-kilometers, was up by 2.7 per cent, compared to January 2021. This was significantly lower than the 9.3 per cent growth witnessed in December 2021.
“Demand growth of 2.7 per cent in January was below expectation, following the 9.3 per cent recorded in December. This likely reflects a shift towards the more normal growth rate of 4.9 per cent expected for this year. Looking ahead, however, we can expect cargo markets to be impacted by the Russia-Ukraine conflict. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure and rates are likely to rise. To what extent, however, it is still too early to predict,” Walsh added.
Meanwhile, aviation experts have opined that the Russia-Ukraine conflict will have a negative impact on air cargo.
According to them, airspace closures will stop direct connectivity to many markets connected to Russia. Overall, the impact on global markets is expected to be low as cargo carried to/from/within Russia accounted for just 0.6 per cent of the global cargo carried by air in 2021. Also several specialised cargo carriers are registered in Russia and Ukraine, particularly those involved with heavy lift operations.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
