
Freight capacity, measured in available freight tonne kilometres (AFTKs), grew by 5.1% year-on-year in April 2018. This was the second time in 21 months that capacity growth surpassed demand growth.
After March’s drop to a 23-month low, global airfreight volumes recovered slightly in April 2018. However, demand growth remains significantly slower than in much of 2017. This is believed to be largely due to the end of the restocking cycle, when businesses rapidly increase their inventory to meet unexpectedly high demand.
The Purchasing Managers’ Index (PMI) for manufacturing and export orders fell in April 2018 to its lowest level since 2016. A drop in global trade is also evident, with containerised freight demand slowing in tandem with airfreight demand. Seasonally-adjusted freight volumes continue to track sideways.
"April saw a strengthening from the abrupt slowdown in growth experienced in March. This is good news,” said Alexandre de Juniac, IATA's Director General and CEO.“We remain cautiously optimistic that demand will grow in the region of 4% this year. But the forecast appears to have increasing downside potential. Oil prices continue to rise as does protectionist rhetoric. Borders open to people and to trade drive economic growth and social prosperity. We are all disadvantaged when they are closed."