The start of the Northern Hemisphere airline summer schedules in early April brought about the introduction of additional services, leading to a significant increase in bellyhold capacity within the air cargo market.
This surge in summer bellyhold capacity on major routes, combined with a notable 4% decline in demand during April, presents a formidable challenge for the industry over the next four to five months. It is anticipated that the global air cargo market may have to endure until October before witnessing any meaningful signs of recovery.
In April, airfreight spot rates experienced a substantial 41% decrease compared to the same period in 2022. This decline can be attributed to a 7% rise in cargo capacity, which consequently resulted in lower load factors. Moreover, April marked the 14th consecutive month of year-on-year volume declines in the air cargo sector.
1. Summer capacity boom hits airfreight rates, Air Cargo News, May 9, 2023. Accessed May 22, 2023.