10.5% Raised by the Africa Airlines Cargo Capacity in July IATA Divulged

By Abdul Rahman Bangura-

Photo Credit: Airport Technology

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- In July 2024, African airlines expanded their air cargo capacity—the available space on planes for transporting goods—by 10.5%, even as they faced slower demand growth compared to other regions.

Across the board, the requests for air cargo heightened by 6.2% year on-year, noting lesser advancement rate enlisted by any region this
year. Thus, the Africa-Asia market stood out with a 15.4% soaring in demand compared to July 2023, reflecting stout trade activity between the two regions.

These findings are based on the International Air Transport Association’s (IATA) July 2024 air cargo analysis report.

“African airlines saw 6.2% year-on-year demand growth for air cargo in July – the lowest of all regions and their lowest recorded figure in
2024. Demand on the Africa–Asia market increased by 15.4% compared to July 2023. July capacity increased by 10.5% year-on year,” the report read in part.

The IATA report same offered a thorough overview of the air cargo market’s performance across diverse regions in July 2024, showcasing a range of results. Asia-Pacific airlines saw the clean advancement, with a 17.6% year-on-year increase in demand, hugely top up by a 19.8% rise within the Asia trade lane. Other routes, such as Europe-Asia, Middle East-Asia, and Asia-Africa, experienced demand increases of 17.9%, 15.9%, and 15.4% respectively, alongside an 11.3% growth in capacity.

In North America, air cargo demand grew by 8.7% year-on-year, though this was partly affected by flight cancellations and airport closures due to Hurricane Beryl. The Asia-North America route, the largest in terms of volume, saw a 10.8% increase, while North America-Europe demand rose by 5.3%. Capacity in this region expanded by 7.0%.

European airlines reported a 13.7% increase in demand, with a remarkable 32.2% surge on the Middle East-Europe route. Demand on the Europe-Asia route grew by 17.9%, while within Europe, it rose by 15.5%. Capacity for European carriers increased by 7.6%.

In the Middle East, airlines experienced a 14.7% growth in demand, with the Middle East-Europe route leading with a 32.2% increase, followed by Middle East-Asia at 15.9%. Capacity in this region grew by 4.4%.

Latin American carriers saw an 11.1% rise in air cargo demand, with capacity increasing by 9.4%. Similar to North America, their growth
was affected by disruptions caused by Hurricane Beryl.

The IATA data for July 2024 punctuates continued growth in the global air cargo market, with demand up 13.6% year-on-year and
international operations rising by 14.3%. This is the eighth straight month of double-digit growth, reaching levels not seen since the 2021
record highs.

Air cargo capacity grew by 8.3% year-on-year, with a 10.1% increase for international operations. The growth was driven mainly by a 12.8%
rise in belly cargo capacity (cargo space in passenger planes), supported by strong passenger markets.

Diverse reasons prompted the air cargo market in July 2024. The global manufacturing sector showed slight expansion, with the Purchasing Managers Index (PMI) at 50.2, while new export orders remained in contraction at 49.4.

Industrial production remained stable compared to the previous month, and global cross-border trade increased by 0.7%. Inflation rates were relatively stable in the US, Japan, and the EU, while China’s inflation rose to 0.6%, its highest level in five months.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent