Latin American airlines recorded the largest drop in cargo transport worldwide in March, with a 19,3% year-on-year contraction in demand, according to a report released this Tuesday (28.04.2020/XNUMX/XNUMX) by the International Air Transport Association (IATA).
The study noted that demand suffered “a significant deterioration compared to February” (-0,5%) and explained that sAlthough the declines were widespread worldwide, they were most severe in Central and South America., with volumes falling by up to 35% annually. At the same time, the capacity offered contracted by 37,6%.
Compared, global demand, measured in cargo tonnes per kilometre (CTK), fell 15,2% in March compared to the same month of the previous year and 15,8% for international markets.
While the overall capacity offered, measured in available cargo tonnes (ACTK), was reduced by 22,7% in March and 24,6% less for international markets.
In this sense, international markets represent 87% of the world's air cargo (2,3% for Latin America) and the capacity offered in warehouses for this type of cargo was reduced by 43,7% in March.
However, the decline was offset by a 6,2% increase in capacity through expanded use of freighter aircraft, including the use of idled passenger aircraft converted to full-load operations.
Currently, we do not have sufficient capacity to meet the remaining demand for air cargo.. Volumes fell by more than 15% in March compared to a year earlier, but capacity plummeted by almost 23%,” said Alexandre de Juniac, IATA’s director general and CEO.
And I add: “For example, there is a doubling of demand for pharmaceutical shipments that are critical to this crisis. With most of the passenger fleet idle, airlines are doing everything they can to meet demand by adding cargo services, including converting passenger aircraft to full cargo activity.”".
After Latin America, the most affected regions In freight transport, the most important were Europe (-18,8%), Asia (-15,9%), the Middle East (-14,1%), North America (-13,3%) and Africa (-1,2%).
As for the outlook for the rest of 2020, the World Trade Organization (WTO) forecast gives little indication of a quick recovery. The optimistic scenario is for a 13% drop in trade for this year, while the pessimistic scenario sees a 32% drop.
"The recession will likely hit air cargo at least as severely as the rest of the economy. To keep the supply chain moving to meet demand, airlines must be financially viable, and the need for financial assistance for airlines by any means possible remains urgent.", concluded de Juniac
During this period of time, it is critical for vital supplies to get to where they are needed the most.
We urge governments to assist #airlines by cutting the red tape in the areas below ?
Read the full release here: https://t.co/aXdtLZWFLJ pic.twitter.com/ri0Q7RFNwe
- IATA (@IATA) April 28, 2020
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