No one knows how long it will last, but the international airfreight industry is partying like it’s 1999.
Airfreight demand, measured in freight ton-kilometers, rose 12.7 percent in May compared with the same period in 2016, according to data released today by the International Air Transport Association (IATA), the global airline trade group. This was up from the 8.7-percent annual growth recorded in April, and is more than three times higher than the overall five-year average growth rate of 3.8 percent, according to IATA data.
Freight capacity, measured in available freight ton-kilometers (AFTKs), grew in May by 5.2 percent year over year. This continues a multi-month trend of demand exceeding supply, a recent reversal of what had been a persistent oversupply condition. The surge in demand bodes well for airfreight yields, which have been a problem for the past seven years. Click here to read more.