Demand measured in cargo tonne kilometres (CTK) fell 8.3% compared to August 2021, an improvement on July when the year-on-year decline was 9.7%.
Capacity was up 6.3% compared to August 2021, a significant expansion compared to July, when it was 3.6% year-on-year.
IATA says the global goods trade expanded slightly in August and easing of Covid-19 restrictions in China positively affected cargo markets, though maritime was the main beneficiary.
Inflation levels in G7 countries slowed for the first time since November 2020 and jet fuel prices stabilised.
New export orders decreased in leading economies in all regions except the US.
Willie Walsh, Director General of IATA says that air cargo is demonstrating resilience and have been relatively stable in the face of economic uncertainties and geopolitical conflicts but market signals remain mixed.
He says, “August presented several indicators with upside potential: oil prices stabilised, inflation slowed and there was a slight expansion in goods traded globally. But the decrease in new export orders in all markets except the US tells us that developments in the months ahead will need to be watched carefully.”
Volumes for Asia-Pacific airlines decreased 8.3% in August, and improvement over the 9% decline in July as Covid-19 restrictions are eased in China.
North American airlines saw a decrease 3.4% compared to 5.7% in July helped by the lifting of Covid-19 restrictions in China.
European airlines were down 15.1%, the worst performance of any region due to the war in Ukraine, labour shortages and high inflation.
The Middle East was down 11.3% due to stagnant volumes to and from Europe.
Latin America was up 9% and airlines are adding new services and capacity, with some investing in additional aircraft.
Africa increased by 1%, a significant improvement on July when the region was down 3.5%.