• Geneva - The International Air Transport Association (IATA) released October data for global air freight markets showing that air cargo demand continued to improve but at a slower pace than the previous month and remains below previous year levels.               Global demand, measured in cargo tonne-kilometers (CTKs*), was 6.2% below previous-year levels in October (-7.5% for international operations). That is an improvement from the 7.8% year-on-year drop recorded in September. However, the pace of recovery in October was slower than in September with month-on-month demand growing 4.1% (1.1% for international).  
  • Global capacity, measured in available cargo tonne-kilometers (ACTKs), shrank by 22.6% in October (-24.8% for international operations) compared to the previous year. That is nearly four times larger than the contraction in demand, indicating the continuing and severe capacity crunch.
  • Strong regional variations continue with North American and African carriers reporting year-on-year gains in demand (+6.2% and +2.2% respectively), while all other regions remained in negative territory compared to a year earlier.
  • Improving performance is aligned with improvements in key economic indicators;

    • The new export orders component of the manufacturing Purchasing Managers' Index (PMI) stayed above the 50-mark for the second month in a row. Results above 50 indicate economic growth. This a significant development as the PMI had been in negative growth territory from mid-2018 through to August 2020;
    • Global goods trade continued to trend upwards in recent months, according to the World Trade Organization. The uptick will not be sufficient to avoid a full-year decline of 9.2% compared to 2019. Much of this ground, however, will be regained in 2021 with an expectation of 7.2% annual growth;
    • The Global Composite PMI which reflects changes in global output, employment, new business, backlogs and prices, indicates that economic recovery will continue in Q4/2020 despite a resurgence of the COVID-19 virus in many markets. 

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