The International Air Cargo Association (TIACA) predicts the next 12 months will be challenging for air cargo demand as the market faces reduced consumer spending due to high inflation, high-interest rates, high energy costs, and concern over job security.
TIACA expects national economics to have a significant influence during the first half of 2023.
It also outlined some positives for the industry. “…the current situation is temporary and we can hope that later in 2023 central banks will start reducing interest rates when inflation is considered to be under control,” TIACA said in its newsletter.
Although high energy costs are expected to persist, particularly in Europe, TIACA noted that “structurally the industry is in a good place”. The association was optimistic demand would pick up toward the second half of 2023.
“We can expect further capacity increases as freighter conversions and production deliveries look very buoyant for the next few years.
We can also see the continuing return of passenger operations bringing further belly capacity back to the market,” TIACA said.
“E-commerce demand will continue to be a source of growth but overall, we anticipate a slight reduction in volumes when compared to 2022 with downward pressure on yields based on returning capacity and slower demand,” TIACA added.
Source: Air Cargo News