The peak holiday season started
off with a thud for cargo airlines, as demand continued to fall short
of supply, amid slowing global growth and a trade war that continues
to weigh on the sector.
“Air cargo’s peak season is off to a disappointing start,” Alexandre de Juniac, director general of the IATA and its CEO, said in a release. “It has been a very tough year for the air cargo industry.”
Air cargo capacity has outpaced demand for 18 months, the IATA said. The Middle East and Asia-Pacific regions posted the sharpest declines, 3.5% and 3.3%, respectively. Europe demand fell 2.3% from October 2018, while demand in North America dropped 2.2%. Latin American volumes fell 1.9%.
The Dow Jones Industrial Average fell sharply on Tuesday after President Donald Trump said it may be better to wait until after the 2020 presidential election before striking a deal with China. Stocks recovered on Wednesday after a report that Washington and Beijing were moving toward a deal.