Growth of air freight slows down in 2^nd quarter as compared to the same periods in last couple of years, air cargo demand has decreased as compared to capacity.

The demand of air cargo came off the boil since second quarter this year, while the extra capacity has exposed a more fragile situation of the load factors where demand and capacity ratios are subject to change. According to the figures of IATA, the progress in demand is increased about 2.1 percent, at a year on year scale.

IATA report also illustrates that this is the slowest growth rate in the history of air cargo, as compared with growth in first quarter, which was 4 %, it is almost half. In the meantime, the capacity of the air cargo handlers has been extended by 4.3% during this period, which means nothing according to the present situation.

As a result of this expansion in capacity, supply and demand curve has also been disturbed and supply of services have increased more than demand. It affected the load factors that decreased to 44.3% as compared with 44.7% in the month of April.

IATA stated that air cargo carriers of most regions saw very low demand except Middle East cargo carriers because their growth is remarkable with 18.1% due to highly increased trade in the Middle East as well as the benefit of the Gulf carrier’s hub policy.

Growth capacity expanded up to 19.4%.  African cargo carriers showed a 3% increase in demand and a 1.3% growth in capacity.

European airlines said that in May 2015, their freight business was reduced than the May of 2014. Due to a laughable performance of import and export, Asia Pacific Airlines showed a slow growth as the largest cargo carrier in the Asian region.

A jolting economic system of a Grexit from the European region is also a big issue and one of the active risks. According to stats of IATA, Asia-Pacific as a benchmark showed demand growth of 2.8% in the 2^nd quarter of 2015 as compared to 2014 when it was 6.7%.

Cargo carriers in European zone showed a low demand of 1.3% in May 2015 as compared to May 2014, while growth capacity raised by 2.7%. North American region is not creating any difference as well, exhibited the decline in demand of 2.9% year on year. As the poor effects of weather and fading state of overloading of US seaports, solid growth is expected in the next months of the year.