Measured in cargo tonne kilometres (CTK), demand was down 11.2% in April, putting it 1% below April 2019 levels, and capacity was down 2%, with Asia registering the largest fall.
The key reasons for the fall were the war in Ukraine removing cargo capacity to serve Europe, and the zero-Covid policy in China causing flight cancellations because of labour shortages.
New export orders are shrinking in all markets except the US, and global goods trade continues to decline with China’s economy growing slowly because of Covid-19 related lockdowns.
The lockdowns have brought Shanghai, the world’s largest port, to a standstill, and supply chain disruptions due to the Ukraine-Russia conflict are adding to the downward pressure on trade.
Willie Walsh, Director General of IATA, says, “The combination of the war in Ukraine and Covid-19 lockdowns in China have pushed up energy costs, intensified supply chain disruptions, and fed inflation. The operating environment is challenging for all businesses, including air cargo. But with China easing lockdown restrictions, there is cause for some optimism and the supply/demand imbalance is keeping yields high.”