Geneva - -While air freight performance remains soft it is nonetheless an improvement on the weak market conditions of a year ago. Compared to June 2011, freight demand has grown by 0.8%, behind a capacity expansion of 1.7%, according to data released by the The International Air Transport Association (IATA).
The current level of demand shows an improvement of about 2.5% on the market lows reached in the fourth quarter of 2011.

•    North American carriers saw demand grow 1.8% compared to the previous June, while capacity shrank by 1.0%. An improvement in economic conditions and particularly consumer demand in the US has helped support the increase in air freight demand in that region throughout 2012. Middle East carriersrecorded a 17.9 % increase in demand against a 14.2% increase in capacity. Middle Eastern airlines have been adding capacity to meet the need for moving goods between the Middle East and Africa and also toward Europe and Asia. African airlines were also in positive territory with a 15.9% increase in demand against a 12.1% increase in capacity.

•    Asia-Pacific airlines reported a 3% decline in demand ahead of a 1.3% trimming of capacity. The slowdown in major Asian economies – China and India - has put a dampener on air freight demand for the airlines in Asia-Pacific. Continued economic woes and waning consumer confidence in Europe has seen air freight in the region decline by 1.1% compared to June 2011, even as capacity grew by 1.8%.Latin American airlines recorded a 1.4% decline in demand while capacity grew by 12.5%.