Global air freight demand in April recorded its steepest drop ever as capacity crunch continued to plague the international cargo market due to coronavirus-related travel restrictions, the International Air Transport Association said in a new report June 3.
Global air freight demand plunged 27.7% year on year in April, while capacity plummeted by 42% due to the loss of belly-cargo operations on passenger aircraft, the association said.
"There is a severe capacity crunch in air cargo," said Alexandre de Juniac, IATA's CEO, in a statement. "The result is damaging global supply chains with longer shipping times and higher costs. Airlines are deploying as much capacity as possible, including special charter operations and the temporary use of passenger cabins for cargo."
Belly capacity for international air cargo contracted by 75% in April from a year-ago period, partially offset by a 15% increase in capacity through expanded use of freighter aircraft, IATA said.
Jet fuel demand
Jet fuel, which accounts for 8% of the global oil demand, has been the biggest casualty of the demand destruction caused by the coronavirus pandemic.
Demand for aviation fuel in April fell as much as 60% as the sector halted due to lockdown measures in place in most of the world.
"Governments need to continue to ensure that vital supply lines remain open and efficient," said de Juniac. "While many have responded with speed and clarity to facilitate the movement of cargo, government red-tape — particularly in Africa and Latin America — is preventing the industry from flexibly deploying aircraft to meet the demands of the pandemic and the global economy."
Latin American carriers posted the sharpest fall among all regions in April, with a 38.9% year on year decline in international demand. International capacity decreased 55.5% in Latin America.
"The COVID-19 crisis is particularly challenging for airlines based in Latin America owing to strict containment measures and a lack of support from governments to keep cargo moving," IATA said.
