Page 6 - World ATM Directory & ANSP Report 2020
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 December 2019
(% year-on- year)
 World share1
 FTK
   AFTK
FLF (%-pt)2
 FLF (level)3
Total Market
 100.0%
 -2.7%
 2.8%
 -2.7%
 46.7%
 Africa
1.8%
10.3%
10.0%
0.1%
36.8%
 Asia Pacific
  34.6%
  -3.5%
  2.8%
  -3.4%
  51.9%
 Europe
23.7%
-1.1%
4.9%
-3.2%
53.0%
 Latin America
 2.8%
 -5.3%
 -3.1%
 -0.7%
 30.0%
 Middle East
  13.0%
  -3.4%
  1.9%
  -2.6%
  47.0%
 North America
24.2%
-3.4%
2.1%
-2.2%
39.5%
    1 of industry FTKs in 2019
2 Year-on-year change in load factor 3 Load factor level
REGIONAL PERFORMANCE
All markets except Africa suffered volume declines in 2019. Asia- Pacific retained the largest share of FTKs, at 34.6%. The share of freight traffic increased modestly for both North America and Europe, to 24.2% and 23.7%, respectively. Middle East carriers’ traffic share held steady at 13%. Africa and Latin America saw their shares lift marginally, to 1.8% and 2.8%.
Asia-Pacific in December posted a decrease in demand of 3.5% compared to the same period a year earlier. Capacity increased by 2.8%. The full-year 2019 saw volumes decline 5.7%, the largest decrease of any region, while capacity increased by 1.1%. As the world’s main manufacturing region, international trade tensions and the global growth slowdown weighed heavily on regional
air freight volumes in 2019. Within-Asia FTKs were particularly affected (down 8% compared to a year ago).
North American airlines saw volumes fall by 3.4% in December, while capacity grew by 2.1%. For 2019 in total, the region’s cargo volumes declined by 1.5%, compared to a capacity increase of 1.6%. Trade tensions and cooling US economic activity in the latter part of the year have been factors in the decline. The 5.6% fall in international year-on-year volumes in December was the weakest monthly growth outcome for the region since early 2016.
European airlines experienced a 1.1% year-on-year decrease in freight demand in December, with a capacity rise of 4.9%. The fall in December was typical of the performance for 2019 as a whole, where volumes fell 1.8%, but capacity increased by 3.4%. Softer activity, including in the manufacturing-intensive German economy, combined with ongoing Brexit uncertainty, contributed to the 2019 result, which in international freight volume terms was the weakest since 2012.
Middle Eastern carriers’ freight volumes decreased 3.4% year-on- year in December and capacity increased by just 1.9%, the lowest of any region. This contributed to an annual result of a decline in demand of 4.8% in 2019 – the second greatest decline in growth rate of all the regions. Annual capacity increased just 0.7%. Disruption to global supply chains and weak global trade, together
with airline restructuring in the region, were the chief drivers of the weaker freight outcome.
Latin American airlines suffered the sharpest fall in demand of any region in December, of 5.3%. The region was also the only one to see a reduction in capacity (-3.1%). Although the region was the second strongest performer across 2019 as a whole, limiting its decline in volumes to just 0.4%, social unrest and economic difficulties in several key countries led to the weakest international FTK outcome since 2015. Annual capacity increased 4.7%.
African carriers’ saw freight demand increase by 10.3% in December 2019, compared to the same month in 2018. This was reflected in the strong 2019 full-year performance, which saw Africa freight volumes expand 7.4%. Capacity in December grew by 10% and for 2019 in total, increased by 13.3%. Over the year, air cargo volumes have been supported by strong capacity growth and investment linkages with Asia.
 Air freight volumes 2019
2019 WAS A DIFFICULT YEAR FOR AIR FREIGHT
-3.3%
DEMAND
(FTKs)
    CAPACITY
North America and Europe both increased their share of total FTKs in 2019, while Asia Pacific remained the largest market.
Growth in global air freight volumes (FTKs) was the slowest since the Global Financial Crisis in 2009...
...and also the first negative growth since 2012.
-2.6 The freight load factor fell by 2.6
Global trade wars and elevated uncer- tainty affected indus- try-wide air freight demand. The global macro-economic backdrop however stabilized towards the year-end.
+2.5% World GDP
growth
(AFTKs)
+2.1%
  percentage points in 2019.
 Asia Pacific
Africa was the strongest performer in air cargo volumes in 2019...
+7.4%
-5.7%
+0.9% Global goods
trade
growth
Supported by the US-China trade deal, 54.8% of airlines in our latest Business Confi- dence Survey expect freight volumes to recover in 2020.
North America
24.2%
Europe
Weakness in international trade impacted the most the Asia Pacific region - one of the world’s main manu- facturing and distribution hubs. Its air freight volumes fell by nearly 6% year-on-year in 2019.
  34.6%
23.7%
     54.8%
    





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