The International Air Transport Association (IATA) released data for November 2022 global air cargo markets showing that demand softened as economic headwinds persist.

IATA said global demand, measured in cargo tonne-kilometres (CTKs), fell 13.7% compared to November 2021, with international operations down 14.2%.

Capacity (measured in available cargo tonne-kilometres, ACTK) was also 1.9% below the same period in November 2021.

IATA said this was the second year-on-year contraction following the first last month (in October) since April 2022.

International cargo capacity decreased by 0.1% compared to November 2021.

"Compared to pre-COVID-19 levels (November 2019), there was a smaller contraction in overall demand (-10.1%), while capacity was down 8.8%," IATA said, noting that several factors affected cargo performance in November, including expansion in global trade,  the US$ appreciation as well as elevated jet fuel prices.

Mixed November signals

"Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated, with demand being relatively stable on a month-to-month basis. But market signals are mixed," said Willie Walsh, IATA's director general.

"November presented several indicators with upside potential: oil prices stabilized, inflation slowed, and there was a slight expansion in goods traded globally. But shrinking export orders globally and in China's rising COVID cases are cause for careful monitoring," Walsh added.

In terms of regional; performance, the IATA report noted decreases in cargo volumes for November 2022.

Asia-Pacific airlines saw their air cargo volumes decrease by 18.6% in November 2022 compared to the same month in 2021 — which is the worst performance of all regions.

IATA said airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China's rising COVID cases.

North American carriers during the period posted a 6.6% decrease in cargo volumes year-on-year. IATA said this was an improvement in performance compared to the 8.6% decline in October.

European carriers also saw a 16.5% decrease in cargo volumes in November 2022 compared to the same month in 2021 — but also an improvement in performance compared to the 18.8% drop in October.

"Airlines in the region continue to be most affected by the war in Ukraine. High inflation levels, most notably in Türkiye, also affected volumes," IATA said.

Middle Eastern carriers experienced a 14.7% year-on-year decrease in cargo volumes.

IATA said cargo volumes to/from Europe impacted the region's performance, registering a 16.3% year-on-year decline in November.

African airlines saw cargo volumes decrease by 6.3% year-on-year in November, but an improvement in performance compared to the previous month (-8.3%). 

Latin American carriers were the only ones to report positive growth.

IATA said Latin American carriers saw a 2.8% increase in cargo volumes.

"This was the strongest performance of all regions and a significant improvement in performance compared to October (-1.4%)," it said.