The International Air Transport Association (IATA) released data for global air freight markets showing that air cargo demand rebounded in 2023 with a particularly strong fourth-quarter performance despite economic uncertainties.
In an announcement, IATA said full-year demand reached a level just slightly below 2022 and 2019.
Global full-year demand in 2023 — measured in cargo tonne-kilometers (CTKs) — was down just 1.9% compared to 2022 (-2.2% for international operations).
Compared to 2019, it was down 3.6% (-3.8 for international operations).
Capacity in 2023 — measured in available cargo tonne-kilometers (ACTKs), was 11.3% above 2022 (+9.6% for international operations), and compared to 2019 (pre-COVID) levels, capacity was up 2.5% (0.0% for international operations).
Exceptionally strong December
IATA said December 2023 saw an exceptionally strong performance, with global demand 10.8% above 2022 levels (+11.5% for international operations).
IATA noted that this was the strongest annual growth performance over the past two years. Global capacity was 13.6% above 2022 levels (+14.1% for international operations).
"Despite political and economic challenges, 2023 saw air cargo markets regain ground lost in 2022 after the extraordinary COVID peak in 2021. Although full year demand was shy of pre-COVID levels by 3.6%, the significant strengthening in the last quarter is a sign that markets are stabilizing towards more normal demand patterns," said Willie Walsh, director general at IATA.
He noted that this puts the industry on "very solid ground for success in 2024."
"But with continued, and in some cases intensifying, instability in geopolitics and economic forces, little should be taken for granted in the months ahead," Walsh added.
2023 regional performance
IATA said Asia-Pacific airlines posted a 0.9% increase in demand in 2023 compared to 2022 and a capacity increase of 28.5%.
In December, airlines in the region recorded the best performance of all regions, posting an 18.5% increase in demand.
North American carriers reported the worst year-on-year performance of all regions, with a 5.7% decrease in demand in 2023 compared to 2022 and a capacity increase of 0.3%. IATA said in December, airlines in the region reported a 2.0% year-on-year decrease in demand.
European carriers posted a 3.9% decrease in demand in 2023 compared to 2022. During the same period, airlines posted a capacity increase of 4.5% for both global and international operations.
IATA said in December, airlines in the region posted an 8.6% increase in demand compared to 2022.
Meanwhile, Middle Eastern carriers reported an increase in demand of 1.6% year-on-year and an increase in capacity of 13.5%.
In December, airlines in the region posted an 18.3% increase in demand for both global and international operations.
Latin American carriers posted the strongest year-on-year performance of all regions, with a 2.0% year-on-year growth in demand in 2023 compared to 2022. During the same period, airlines posted a capacity increase of 13.2%.
African airlines reported a decrease in demand of 1.8% in 2023 compared to 2022 and an increase in capacity of 5.6%.
IATA noted that in November and December, air cargo experienced a modest rise in demand and yields due to disruptions in the Red Sea.
"The recent disruption to maritime routes in the Red Sea has seen some shippers pivot to air cargo. The increased demand saw a spike in air cargo yields on related trade lanes." Walsh said.
"A similar spike is expected in January as disruptions intensified. While not all cargo is suitable for air transport, it is a vital option for some of the most urgent shipments in extraordinary circumstances. And that is critical to the continuity of the global economy," he added.
