African Freight Business Posts 1.2% Growth

The International Air Transport Association, IATA, in its recently released global freight figures shows that although African airlines Freight Tonne Kilometres flown (ie. revenue-generating cargo flown) dropped by 8.4 per cent in December 2015, the region grew by 1.2 per cent.

Despite the general freight growth of 1.2 per cent, under-performance of the Nigerian and South African economies still posed a challenge throughout the year.

The freight load factor (percentage of available capacity that was taken up by the market) in 2015 was 29.7 per cent, the lowest of any region.

“The under-performance of the Nigerian and South African economies was a challenge throughout the year, but trade growth to and from the region was sufficient to drive a modest expansion in freight tonne kilometres (FTKs),” IATA noted.

Other global figures released by the world airline body, show that cargo volumes measured in FTKs expanded by 2.2 per cent in 2015 compared to 2014. This was a slower pace of growth than the 5.0 per cent growth recorded in 2014. The weakness reflects sluggish trade growth in Europe and Asia-Pacific.

After a strong start, air freight volumes began a decline that continued through most of 2015, until some improvements to world trade drove a modest pick-up late in the year.

IATA director-general, Tony Tyler described 2015 as a difficult year for air cargo and enjoined all to adjust with the current trend of cargo growing in line with rates of economic expansion.

“2015 was another very difficult year for air cargo. Growth has slowed and revenue is falling. In 2011 air cargo revenue peaked at $67 billion,”Tyler said.