Air freight volumes in the second quarter have been on the rise against year earlier levels on the back of a cyclical upswing in global trade, yet high jet fuel prices and weak yields place downwards pressure on earnings, according to Shipping Gazette.
The International Air Transport Association (IATA) said in a report that business confidence has flattened and world trade volumes have started to decline.
Jet fuel prices have been stable, but remain high, and yields are down on a year ago, continuing to put strain on financial performance.
Experts fear that newly delivered aircraft entering into service this year will further strain yields. Cargo heads surveyed expect yields to remain stable this year on rising volumes, but with weaker rates.
Demand drivers are mostly positive. In China, consumer confidence remains stable, and in Europe and the US there have made solid improvements in recent months.
There has been a quieting in capital expenditure plans from Japanese companies, yet there has been a solid increase in the UK. These developments have supported growth in demand for air-freighted commodities such as semiconductors.
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