African airlines reported a 2.4% year-on-year decline in air cargo demand in May 2023 due to the impact of the conflict in Sudan since mid-April, the International Air Transport Association (IATA) said in a new report.  

The growth on the Africa to Asia trade route slowed significantly in May to 11% from 18.5% in April. However, capacity was up 9.2% year-on-year in May.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness,” said IATA Director General Willie Walsh.

“The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo,” he stated. 

Global demand fell 5.2% in May 2023 from a year earlier, while capacity rose 14.5% year-on-year, primarily driven by belly capacity, which increases as demand in the passenger business recovers.

IATA said that capacity currently stands at 5.9% above May 2019 (pre-pandemic) levels.

(Editing by Seban Scaria seban.scaria@lseg.com)