Ninth Straight Months of Double-Digit Growth for Air Cargo in August

The International Air Transport Association (IATA) released data for August 2024 global air cargo markets showing continued strong annual growth in demand.  •    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 11.4% compared to August 2023 levels (12.4% for international operations). This is the ninth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021. •    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.2% compared to August 2023 (8.2% for international operations). This was largely related to the growth in international belly capacity, which rose 10.9% on the strength of passenger markets.  Industry-wide capacity has reached an all-time high. “We continue to see very good news in air cargo markets. The sector recorded a second consecutive month of record high demand year-to-date. Even with record levels of capacity, yields are up 11.7% on 2023, 2% on the previous month, and 46% above pre-pandemic levels. This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping,” said Willie Walsh, IATA’s Director General. Several factors in the operating environment should be noted: •    Industrial production stayed level in August month-on-month and global cross-border trade fell marginally with -0.3%.  •    In August both the Purchasing Managers Index (PMIs) for global manufacturing output and the PMI for new export orders were below the 50-mark at 49.9 and 48.4 respectively, indicating contraction.   •    Inflation saw a mixed picture in August. In the US and EU, inflation rates fell to 2.6% and 2.4% respectively, the lowest rates since 2021. In contrast, Japan’s inflation ticked up 0.3 percentage points to 3.0%, the highest rate in ten months. China’s inflation rate continued its moderate upward trend, growing by 0.1 percentage points to reach 0.7%, the highest rate in six months.

 

Air cargo market in detail - August 2024

August 2024 (% year-on-year) World share1 CTK ACTK CLF (%-pt) CLF (level) Total Market 100% 11.4% 6.2% 2.0% 44.0% Africa 2.0% 7.5% 11.4% -1.4% 37.8% Asia Pacific 33.3% 14.6% 8.6% 2.4% 46.6% Europe 21.4% 13.5% 9.4% 1.8% 50.1% Latin America 2.8% 14.2% 8.0% 1.9% 35.9% Middle East 13.5% 13.5% 4.0% 3.7% 44.5% North America 26.9% 4.8% 2.4% 0.9% 38.7%

1% of industry CTKs in 2023

August Regional Performance

Asia-Pacific airlines saw 14.6% year-on-year demand growth for air cargo in August – the strongest of all regions. Demand on the Asia-Africa, Asia-Europe and within-Asia markets grew by 21.2%, 18.4% and 16.1% respectively. Intra-Asia demand growth decreased by 5.0 percentage points from the previous month, partially linked to the social unrest in Bangladesh and Typhoon Shanshan in Japan. Both events impacted local logistics operations with airport closures and flight cancellations. Capacity increased by 8.6% year-on-year. North American carriers saw 4.8% year-on-year demand growth for air cargo in August– the lowest of all regions. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 9.3% year-on-year, while the North America-Europe route saw a more modest increase of 6.1%. August capacity increased by 2.4% year-on-year. European carriers saw 13.5% year-on-year demand growth for air cargo in August. The Middle East–Europe trade lane led growth, up 28.9%, maintaining a streak of double-digit annual growth that originated in September 2023. The Europe–Asia route, the second largest market, was up 18.4%. Within Europe also saw double-digit growth, up 15.0%. August capacity increased 9.4% year-on-year. Middle Eastern carriers saw 13.5% year-on-year demand growth for air cargo in August. As mentioned above, the Middle East–Europe market performed particularly well surging 28.9%, ahead of Middle East-Asia which grew by 13.5% year-on-year. August capacity increased 4.0% year-on-year. Latin American carriers saw 14.2% year-on-year demand growth for air cargo in August. Capacity increased 8.0% year-on-year. African airlines saw 7.5% year-on-year demand growth for air cargo in August. Demand on the Africa–Asia market increased by 21.1% compared to August 2023, maintaining a streak of double-digit annual growth that originated in the second half of 2023. August capacity increased by 11.4% year-on-year.

>Read the latest Cargo Market Analysis

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Passenger Demand Up 8.6% in August. Load Factor Reaches Record High

The International Air Transport Association (IATA) released data for August 2024 global passenger demand with the following highlights: •    Total demand, measured in revenue passenger kilometres (RPK), was up 8.6% compared to August 2023. Total capacity, measured in available seat kilometres (ASK), was up 6.5% year-on-year. The August load factor was 86.2% (+1.6ppt compared to August 2023), a new record high. •    International demand rose 10.6% compared to August 2023. Capacity was up 10.1% year-on-year and the load factor rose to 85.7% (+0.4ppt compared to August 2023).  •    Domestic demand rose 5.6% compared to August 2023. Capacity was up 1.2% year-on-year and the load factor was 86.9% (+3.6ppt compared to August 2023).  “The market for air travel is hot and airlines are doing a great job at meeting the growing demand for travel. Efficiency gains have driven load factors to record highs while the 6.5% capacity increase demonstrates resilience in the face of persistent supply chain issues and infrastructure deficiencies,” said Willie Walsh, IATA’s Director General. “Looking ahead, the continued strong demand growth signals that we could be fast approaching an infrastructure capacity crunch that would restrict connectivity and choice for passengers and businesses. If governments want to maximize the benefits of aviation, they must take bold decisions to ensure sufficient infrastructure capacity. And, in the interim, both airports and air navigation service providers need to do more with the resources they currently have. In particular, the variance in declared capacity of airports with broadly the same infrastructure needs to be resolved, with airports emulating the best performers. The industry cannot afford to under-utilize the airport infrastructure that we have,” said Walsh.

 

Air passenger market in detail - August 2024

August 2024 (% year-on-year) World share1 RPK ASK PLF (%-pt) PLF (level) Total Market 100% 8.6% 6.5% 1.6% 86.2% Africa 2.1% 9.6% 6.7% 2.1% 77.9% Asia Pacific 31.7% 13.4% 8.7% 3.6% 86.0% Europe 27.1% 7.8% 7.3% 0.4% 87.9% Latin America 5.5% 6.5% 8.1% -1.3% 84.0% Middle East 9.4% 5.0% 5.9% -0.7% 82.3% North America 24.2% 4.8% 2.4% 2.0% 87.1%

1% of industry RPKs in 2023

Regional Breakdown - International Passenger Markets All regions showed growth for international passenger markets in August 2024 compared to August 2023. Ticket sales in May-July for travel in August-September showed a 6.6% year-on-year increase, which bodes well for further strong growth this year.

IATA Connect, creating a secure community of aviation safety, security, compliance and operations experts at airlines

The International Air Transport Association (IATA) has launched IATA Connect, creating a secure community of aviation safety, security, compliance and operations experts at airlines, regulatory agencies and auditors. 

With an initial focus on the IATA Operational Safety Audit (IOSA), IATA Connect community members will be able to access and use the platform to securely exchange safety documentation, share information, and collaborate to support further improvements in aviation safety.

In addition to the IOSA Registry, IATA Connect will also house a secure private documentation repository with analytical and benchmarking capabilities. Contents of the document repository include IOSA audit reports, standards and related information, guidance materials, 440 airline profiles, industry alerts and news sources which can be accessed and shared. 

Some 2,300 aviation safety professionals have been invited to join the IATA Connect community covering regulators, IOSA registered airlines and auditors. 

Agreement on principles for use of aircraft operational data

The International Air Transport Association (IATA) and Airbus, Embraer and Rolls-Royce have established five key principles for access to, and the use of, Aircraft Operational Data (AOD). 

These are:

1.    Consent: AOD can only be extracted with the airline’s written consent.

2.    Transparency: Airlines have visibility of the data generated by their aircraft and how it is used.

3.    Sharing: Airlines can choose the parties they share AOD with and control such sharing.

4.    Accessibility: Airlines can access, analyse, and use AOD from aircraft they operate without interference. 

5.    Responsible Use: Airlines provide AOD to Original Equipment Manufacturers (OEMs) to improve safety and, if they choose, to support aircraft reliability.

The principles apply to AOD generated by aircraft once delivered to the airline/operator, whether in flight or on the ground, and are subject to regulations and to contractual agreements between parties. The agreement follows productive and collaborative discussions between IATA (on behalf of the airline/operator community) and leading aircraft and engine manufacturers. Clarity on definition and use of AOD is important given AOD’s critical role in driving innovations in safety, maintenance, and operational efficiencies. 

“These principles bring transparency to how AOD is used. Establishing that airlines are in control of the data generated by the aircraft they operate sets an important best practice in an area where a common understanding was needed. With this agreement, airlines, manufacturers and other interested parties will be able to more efficiently utilize AOD to operate and manage aircraft safely, efficiently and more sustainably. We look forward to other OEMs joining the early adopters in endorsing these commitments," said Willie Walsh, IATA’s Director General.

The AOD Statement document with the agreed principles is available. IATA and OEMs will continually improve these guidelines to keep pace with technological advancements and industry needs.

statement_of_principles_and_best_practices_regarding_aircraft_operational_data.pdf (iata.org)

Aviation Safety Priorities: Global Standards, Culture, and Innovation

.The International Air Transport Association (IATA) highlighted three critical priorities for sustained progress in aviation safety as the 2024 IATA World Safety and Operations Conference opened in Marrakech, Morocco today. The industry must focus on continuously strengthening global standards, safety culture and the use of data to improve performance in the face of growing operational challenges, numerous regional conflicts and evolving cybersecurity threats. 

“Safety is aviation’s main priority. Over 4.4 billion travellers flew safely in 2023 despite an increasingly complex operating environment. To progress even further, we must prioritize global standards—implementation and continuous modernization. We must also continue to cultivate a safety culture with an emphasis on collaboration and strong leadership. And we must utilize the rapidly growing capabilities of data analysis to better understand risks and drive innovation. Together, these are a winning strategy to make our safe industry even safer,” said Willie Walsh, IATA’s Director General.

IATA and ANAC work together to enhance aviation safety

The International Air Transport Association (IATA) and the Brazilian National Civil Aviation Agency (ANAC Brazil) are partnering to strengthen safety oversight in Brazil’s aviation sector with an agreement for the IATA Operational Safety Audit (IOSA) and IATA Standard Safety Assessment (ISSA) programs to support and complement ANAC’s oversight of airline operations.

“Safety is a common top priority for everyone in aviation. We look forward to working with ANAC to further strengthen safety oversight in Brazil with IOSA and ISSA. Both programs have a solid track record of supporting improved safety performance. We are confident that this will be a model partnership for other regulators to follow,” said Nick Careen, IATA’s Senior Vice President Operations, Safety and Security.

“This MoU marks an important step in enhancing the safety standards of Brazil’s aviation industry. By integrating IOSA and ISSA into our safety oversight processes, we are reinforcing our commitment to maintaining the highest levels of operational safety in Brazil,” Bruno Diniz Del Bel, Head of Department, Department of Flight Standards ANAC Brazil.

IATA and ANAC will collaborate in several key areas, including:

IATA Wings of Change Europe to Offer Agenda for European Competitiveness

The International Air Transport Association (IATA) announced that the theme for the 2024 Wings of Change Europe (WOCE) conference will focus on furthering competitive and sustainable European aviation. WOCE will take place on 20-21 November 2024 in Rome, Italy, hosted by ITA Airways.

Europe’s prosperity is inextricably linked to its competitiveness. Europe’s politicians are finally waking up to the erosion of competitiveness after years of over-regulation. With the next European Commission aiming to kick-start a European renaissance, Wings of Change Europe will focus on policy options to strengthen European aviation’s competitiveness. The significance of a strong aviation sector was highlighted in the recent Draghi report which noted how aviation ‘enables the prosperity of other branches of the economy.’ It is that vision which must be strategically developed with regulators and industry working side-by-side,” said Willie Walsh, IATA’s Director General.

ITA Airways is proud to host Wings of Change Europe, and we’re especially delighted to bring people to Rome, our home and hub of our operations. This city has echoes of an ancient world that understood the power of mobility, connectivity and transport. The modern Italy, with Rome at its heart, has reinvigorated that vision and ITA Airways is playing a leading role. We are looking forward to bringing industry and policymakers together for two days of enlightened debate, focused on driving real change for a more competitive and sustainable aviation system" said Antonino Turicchi, Chairman of ITA Airways, who will give a welcome address to open the event.

Speakers and Sessions

IATA further develops CO2 Connect for Cargo with British Airways and Microsoft

                                      The International Air Transport Association (IATA) announced collaborations with British Airways and Microsoft to further enhance the accuracy of IATA CO2 Connect for Cargo in calculating carbon emissions. The announcement was made at the IATA World Sustainability Symposium (WSS), currently taking place in Miami.

British Airways will be contributing flight-level fuel burn data of its approximately 700 daily flights to IATA CO2 Connect. “At British Airways, transparency and consistency are essential to our sustainability efforts. By sharing our flight-level fuel burn data with IATA CO2 Connect, we’re enhancing the accuracy of CO2 emissions calculations and ensuring access, to reliable, clear information. It's crucial for the entire industry to align on these standards, and collaboration is key,” said Carrie Harris, Director of Sustainability at British Airways.

Microsoft, building on its relationship with British Airways, will also contribute to the development of IATA CO2 Connect for Cargo by providing technical guidance and by becoming one of the first pilot testers of the service.  

“Industry collaboration is essential for the decarbonization of aviation. Using CO2 Connect for Cargo will help Microsoft work with airlines to reduce emissions, make informed upstream investments with our partners, and purchase SAF and SAF certificates,” said Nico De Golia, Director of Sustainability for Microsoft Cloud Logistics. “This announcement showcases the potential impact when companies work to build a strong data foundation, driving the key actions needed to achieve our shared sustainability goals.”

IATA announces matchmaker platform for airlines and SAF suppliers

The International Air Transport Association (IATA) will create the Sustainable Aviation Fuel (SAF) Matchmaker to link airlines and SAF suppliers. The development was announced at the World Sustainability Symposium (WSS) with an expected launch date in the first quarter of 2025.

“Our vision is to create a transparent, efficient, and accessible matchmaking platform that will accelerate the uptake of SAF as the aviation industry progresses towards net zero CO2 emissions by 2050. The platform will do that by reducing the costs and complications that airlines face when looking for SAF suppliers. The SAF market’s maturity and globalization will be enhanced by the transparency that the SAF Matchmaker will enable. Every step in that direction is of great importance, considering that SAF is air transportation’s most significant decarbonization tool,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist. 

Specifically, the SAF Matchmaker will address three critical issues: 

The International Air Transport Association (IATA) released updated Policy and Finance Net Zero Roadmaps

The International Air Transport Association (IATA) released updated Policy and Finance Net Zero Roadmaps, containing expanded and deepened analyses, bringing into focus four key conclusions:

•The air transport industry’s energy transition is feasible on the 2050 horizon.

•The amounts of investments needed to make that possible are comparable to those engaged in previous creations of new renewable energy markets.

•Success in the transition depends critically upon policymakers’ unity of purpose.

•The time left for joining forces in air transportation’s energy transition is shrinking by the minute. Every action delayed is an opportunity missed. 

"The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonization by 2050 is possible. They also sound a warning bell that, to achieve this, all stakeholders, particularly policymakers, must collaborate more broadly and act with greater urgency. To be successful, we need clear policy and financial frameworks that will support air transportation’s needs in a way that is realistic and coherent with the massive changes that must take place simultaneously in all economic sectors,” said Willie Walsh, IATA’s Director General.  

The Policy Roadmap emphasizes the importance of strategic policy sequencing and addresses the need for global collaboration, including beyond the aviation sector. The recommendations recognize that there is no one-size-fits-all solution, and policies must ensure that all countries can participate in the future global Sustainable Aviation Fuel (SAF) market.

Highlights include:

•    Immediate Action is needed to unlock the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) and prioritizing SAF in the product mix at refineries.

•    Strategic Policy Sequencing combining technology-push and demand-pull measures will be critical. Moreover, governments must foster global, liquid, and transparent markets for cleaner aviation energy.

Innovation, technology & global challenges are key themes of IATA’s World Safety and Operations Conference

The International Air Transport Association (IATA) announced that the theme for the 2024 World Safety and Operations Conference (WSOC) is “Embracing Innovation and Technology for Safe and Efficient Operations.” WSOC will take place from 1-3 October 2024 in Marrakech, Morocco, hosted by Royal Air Maroc. 

This year’s event takes place against a backdrop of growing operational challenges, regional conflicts, cyber security threats, and extreme weather events, among others. 

“Airlines face common challenges with an operating environment that is growing more complex. At the same time, technological advances, including AI, are offering ever greater potential in support of safe and efficient operations. WSOC 2024 is the forum for industry leaders and experts to share knowledge and experience to make the industry even more resilient and robust in the face of emerging challenges,” said Willie Walsh, IATA’s Director General. 

"Safety is aviation’s highest priority and the cornerstone of every airline’s operation. For Royal Air Maroc, hosting WSOC is an opportunity to contribute to strengthening the industry’s performance while redoubling our own efforts. This is in particularly sharp focus at Royal Air Maroc as we embark on a major expansion to become a 200-aircraft airline by 2037. This growth will bring economic and social benefits across Morocco and Africa and contribute to the region’s preparations for the 2030 FIFA Football World Cup," said Abdelhamid ADDOU, Chairman of the Board and CEO of Royal Air Maroc, who will give a keynote speech at the event and participate in the opening plenary panel. 

Speakers & Sessions

Passenger Demand Up 8% in July

The International Air Transport Association (IATA) released data for July 2024 global passenger demand with the following highlights:

•    Total demand, measured in revenue passenger kilometers (RPK), was up 8.0% compared to July 2023. Total capacity, measured in available seat kilometers (ASK), was up 7.4% year-on-year. The July load factor was 86.0% (+0.5ppt compared to July 2023). There was no significant negative demand impact from the CrowdStrike IT outage on 19 July.

•    International demand rose 10.1% compared to July 2023. Capacity was up 10.5% year-on-year and the load factor fell to 85.9% (-0.3ppt compared to July 2023).  

•    Domestic demand rose 4.8% compared to July 2023. Capacity was up 2.8% year-on-year and the load factor was 86.1% (+1.7ppt compared to July 2023). 

“July was another positive month. In fact, passenger demand hit an all-time high for the industry and in all regions except Africa, despite significant disruption caused by the CrowdStrike IT outage,” said Willie Walsh, IATA’s Director General. 

“The winding down of the peak northern summer season is a reminder of how much people depend on flying. As the mix of travelers shift from leisure to business, aviation’s many roles are evident—reuniting families, enabling exploration, and powering commerce. People need and want to fly. And they are doing that in great numbers. Load factors are at the practicable maximum. But persistent supply chain bottlenecks have made deploying the capacity to meet the need to travel more challenging. As much of the world returns from vacation, there is an urgent call for manufacturers and suppliers to resolve their supply chain issues so that air travel remains accessible and affordable to all those who rely on it,” said Walsh.

Strong air cargo demand grows in July

The International Air Transport Association (IATA) released data for July 2024 global air cargo markets showing continuing strong annual growth in demand.

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 13.6% compared to July 2023 levels (14.3% for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3% compared to July 2023 (10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.

"Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    In July, the Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction.

•    Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7%.

•    Inflation remained relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9%, 2.8%, and 2.8%, respectively. Meanwhile, China’s inflation rate increased 0.3 percentage points to 0.6%, the highest level in five months. 

July Regional Performance

Second IATA World sustainability symposium to take place in Miami

The International Air Transport Association’s (IATA) second World Sustainability Symposium (WSS) will focus on actions needed to achieve the airline industry’s commitment to net-zero CO2 emissions by 2050. The event will take place in Miami, USA on 24-25 September 2024, hosted by American Airlines.

“Sustainability is an existential challenge for humanity as it is for our airline industry. Achieving net-zero CO2 emissions by 2050 is a big and complex task. But working together with the broader aviation industry, and with the support of governments, we will get there. WSS is a unique opportunity to bring all stakeholders together to learn, align and take the critical actions needed to galvanize our determination and accelerate progress,” said Willie Walsh, IATA’s Director General.

Key elements to help achieve net-zero CO2 emissions by 2050 being addressed at the WSS include:

•    Decarbonization: Focusing on aviation's transition to net-zero CO2 emissions, including how to develop, scale, and deliver the solutions necessary to decarbonize aviation over the 25 years to 2050. Discussions will address how to build the markets for Sustainable Aviation Fuel (SAF), carbon removals, and other nascent technologies, and the challenges involved in financing such projects.

•    Innovation and Technology: Exploring new aircraft technologies and operational innovations with a focus on the practical aspects of implementing new technologies rapidly to advance the industry’s net-zero CO2 emissions goal.

Passenger Demand Up 9.1% in June

The International Air Transport Association (IATA) released data for June 2024 global passenger demand with the following highlights:

International demand rose 12.3% compared to June 2023. Capacity was up 12.7% year-on-year and the load factor improved to 85.0% (-0.3ppt on June 2023).

 

Total demand, measured in revenue passenger kilometres (RPK), was up 9.1% compared to June 2023. Total capacity, measured in available seat kilometres (ASK), was up 8.5% year-on-year. The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023).

Domestic demand rose 4.3% compared to June 2023; capacity was up 2.1% year-on-year and the load factor was 85.0% (+1.7ppt compared to June 2023).

“Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations. Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimize delays and get travellers to their destinations on schedule,” said Willie Walsh, IATA’s Director General.

“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together. It is a great reminder of how aviation transforms our very big world into a global community. We wish France every success as the host of the games and cheer all the athletes who will demonstrate the best of human endeavour over the next weeks,” said Walsh.

Regional Breakdown - International Passenger Markets

IBS Software and Singapore Airlines Co-Develop Shipment Record Solution

 Singapore Airlines, a world-leading global carrier, is collaborating with IBS Software to co-develop a shipment record solution. This will make substantial strides in digitally transforming air cargo operations and advancing towards IATA's ONE Record standards through the digitisation of shipment records and usage of technology.

The two companies, in conjunction with Cargo Community Network (CCN), have successfully completed the first phase of this plan that involves the creation and sharing of shipment records across airlines, cargo community system providers and ground handling agents on the ONE Record platform. CCN's open data collaboration platform, CUBEforall, enhances data exchange and transparency, while seamlessly integrating legacy systems with ONE Record standards. This milestone was presented during the IATA ONE Record roadshow in Singapore on July 23, 2024.

Shipment records are one of the most frequently used documents in air cargo, forming the basis for all key processes in sales, planning and execution for organisations. Today, a single shipment results in multiple copies of shipment records across individual stakeholders, and the process of handling physical paper-based documents can be inefficient. Tapping on this new technology can help enhance overall operational efficiencies.  

The digitisation of shipment records through ONE Record will enable Singapore Airlines to maintain a single source of truth, allowing the data to be utilised beyond the physical life cycle of shipments. This streamlined data exchange will facilitate transparency and visibility across reporting, revenue accounting and future planning for all stakeholders. From airline to shipper, IBS Software will increase the accessibility of shipment data for all partners in the air cargo supply chain.

Digital shipment records are fundamental for the future of digital cargo, providing a solution to address incompatible legacy systems, data duplication, and reduced data integrity. The successful implementation of the shipment record based on ONE Record lays the foundation for Singapore Airlines to implement more innovative use cases, to help enhance efficiencies.

Ashok Rajan, Head of Cargo and Logistics Solutions at IBS Software, added, "Partnering with Singapore Airlines, a globally recognised leader in aviation innovation, to drive the digital future of air cargo is a significant objective for IBS Software. In today's cargo industry, data accessibility and transparency are paramount. Data and digitalisation are key enablers for the development of solutions that allow cargo carriers to grow and meet their customers' evolving needs. We are proud to have the support of an industry pioneer like Singapore Airlines in enhancing accessibility and excellence in the digitalisation of air cargo."

Marvin Tan, Senior Vice President Cargo at Singapore Airlines, said, "At Singapore Airlines, we continuously invest and innovate in all aspects of the business. By co-developing a digital shipment record solution with IBS Software, we remain committed to meeting IATA's ONE Record's goal for enhanced data visibility for all our stakeholders. This collaboration positions both organisations at the forefront of cargo digitalisation, as we unlock new efficiencies and business opportunities and respond to the evolving needs of the industry."

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June air cargo demand surges 14.1%, boosting strong first half performance

The International Air Transport Association (IATA) released data for June 2024 global air cargo markets showing continuing strong annual growth in demand. This contributed to an exceptional first half-year performance for air cargo, with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 14.1% compared to June 2023 levels (15.6% for international operations). This is the seventh consecutive month of double-digit year-on-year growth. 

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations). 

•    Total half-year (H1) demand increased by 13.4% compared to H1 2023, by 4.3% compared to H1 2022, and by 0.02% compared to H1 2021.

"Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024," said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    In June the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.

•    Global cross-border trade expanded 0.1% month-on-month in May while industrial production stayed level compared to the previous month. 

•    Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6% and 2.8% respectively, while dropping in the US to 3.0%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.

Strong Air Cargo Demand Continues in May

IATA released data for May 2024 global air cargo markets showing continuing strong annual growth in demand.

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 14.7% compared to May 2023 levels (15.5% for international operations). This is the sixth consecutive month of double-digit year-on-year growth. 

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.7% compared to May 2023 (10.2% for international operations). 

"Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth. Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China. Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane—the world’s biggest,” said Willie Walsh, IATA Director General."

Several factors in the operating environment should be noted:

•    In May the Purchasing Managers Index (PMIs) for global manufacturing output and new export orders indicated expansion (52.6 and 50.4 respectively). 

•    Industrial production and global cross-border trade increased month-on-month in April (0.5% and 1.5% respectively).

•    Inflation saw a mixed picture in May. In the EU and Japan, inflation rates fell to 2.7% and 2.8% respectively, while rising in the US to 3.3%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand due to high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.

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Air cargo market in detail - May 2024

May 2024 (% year-on-year) World share1 CTK ACTK CLF (%-pt) CLF (level) Total Market 100% 14.7% 6.7% 3.1% 44.6% Africa 2.0% 18.4% 21.4% -1.1% 43.8% Asia Pacific 33.3% 17.8% 8.4% 3.6% 45.3% Europe 21.4% 17.2% 11.9% 2.3% 51.8% Latin America 2.8% 12.7% 8.0% 1.5% 36.2% Middle East 13.5% 15.3% 2.7% 5.0% 46.1% North America 26.9% 8.7% 2.5% 2.3% 39.7%

1% of industry CTKs in 2023

May Regional Performance

Asia-Pacific airlines saw 17.8% year-on-year demand growth for air cargo in May. Demand on the Africa-Asia trade lane grew by 40.6% year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.4%, 19.2% and 18.6% respectively. Capacity increased by 8.4% year-on-year.
North American carriers saw 8.7% year-on-year demand growth for air cargo in May —the weakest among all regions. Demand on the Asia-North America trade lane grew by 12.0% year-on-year, while the North America-Europe route saw an increase of 8.9%, marking the largest demand growth for this route since mid-2022. May capacity increased by 2.5% year-on-year.
European carriers saw 17.2% year-on-year demand growth for air cargo in May. Intra-European air cargo rose by 25.6% compared to May 2023, the fifth month in a row of double-digit annual growth. Europe–Middle East routes saw demand increase by 33.8%.  May capacity increased 11.9% year-on-year.
Middle Eastern carriers saw 15.3% year-on-year demand growth for air cargo in May. As mentioned above, the Middle East–Europe market performed particularly well with 33.8% annual growth, ahead of Middle East-Asia which grew by 18.6% year-on-year. May capacity increased 2.7% year-on-year.
Latin American carriers saw 12.7% year-on-year demand growth for air cargo in May. Capacity increased 8.0% year-on-year.
African airlines saw 18.4% year-on-year demand growth for air cargo in May – the strongest of all regions. Demand on the Africa–Asia market increased by 40.6% compared to May 2023, the strongest performance of all trade lanes. May capacity increased by 21.4% year-on-year.  

Read the latest Cargo Market Analysis (iata.org)

IndiGo to Host 81st IATA AGM in Delhi

IndiGo to Host 81st IATA AGM in Delhi

The International Air Transport Association (IATA) announced that IndiGo will host the 81st IATA Annual General Meeting (AGM) and World Air Transport Summit in Delhi, India, on 8-10 June 2025.

“We look forward to gathering the aviation industry in Delhi, India’s gateway city, for the 81st IATA AGM in 2025. It’s been over four decades since the industry came together for an IATA AGM in Delhi. With record aircraft orders, impressive growth, and world-class infrastructure developments, India is firmly on the trajectory to become the world’s third largest aviation market within this decade.  With such bright prospects, it’s the perfect time for the IATA AGM to return to India and witness these exciting developments first hand,” said Willie Walsh, IATA’s Director General. 

“IndiGo is proud to be host airline for the 81st IATA AGM and looks forward to welcoming the global aviation community to Delhi in 2025. India, becoming the third largest economy within the next few years and leading the fourth industrial revolution with the use of AI, is a nation on the move. India's rise in the global aviation landscape over the last years has been nothing short of remarkable, said Pieter Elbers, CEO, IndiGo. 

“IndiGo has been giving wings to the nation since 2006 and increasingly also expands internationally. Building on aviation as a force for good and India’s unique diversity, we are looking forward to engaging in meaningful dialogues aimed at sculpting the global aviation landscape around important topics such as safety, diversity, equity and inclusion, as well as sustainability, while efficiently delivering the growing global demand for air travel,” said Elbers.

The decision to host the 81st IATA AGM in India was made at the 80th IATA AGM in Dubai. This will be the third time the IATA AGM has convened in Delhi, having previously visited India in 1958 and 1983.  

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