Wednesday, July 9, 2014
AIR CARGO ECONOMIC OUTLOOK
Source: Haver AnalyticsHowever, recent developments in the demand environment suggest that growth could weaken in months ahead. According to the IATA Cargo eChartbook Q2 (pdf), business confidence has flattened and world trade volumes have started to decline. Moreover, growth in world trade may be limited by the trend toward on-shoring of production.
Source: Netherlands CPBJet fuel prices have been stable, but remain high at about $120 per barrel, and yields are down on a year ago, continuing to put on strain on financial performance. As new aircraft deliveries come into service in 2014, there could be further downward pressure on yields. Cargo heads surveyed in April expect yields to remain stable during the year ahead, and while they anticipate volumes to increase, rates of growth have been downgraded.