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Global air cargo volumes have continued to see year-over-year growth so far this year, thanks to economic improvements in some regions and an overall improvement in the global trade. However, this volume growth is not enough to improve profitability, as high fuel prices, weak yields and growing capacity kept financial performance of global air cargo carriers from improving, according to a report by International Air Transport Association (IATA).

Trade volumes in Asia bounced back after a weak performance in the first quarter. At the same time, consumers in the US are hopeful about future economic performance.

All these have spurred the growth in demand for air-freighted commodities like semi-conductors, said IATA in its Cargo E-Chartbook for Q32014.

“However, in Europe consumer confidence and trade activity have weakened due to the Russia-Ukraine crisis, which could weaken air freight demand in months ahead.

Business confidence continues to point to expansion, but rates of improvements are still weaker than 2013 year-end,” said the report.

“On the positive side, yields appear to be stabilizing and are up slightly on a year ago, which could reduce downward pressure on financial performance in months ahead,” said IATA.

The report found that air traffic volumes saw an overall 4-5 percent growth this year, compared to volumes a year ago. However, “Growth ahead could be dampened by trends in production which suggest a shift toward domestic activity,” said the report by IATA.



Prior to using FLAGSHIP DELIVERY INC. we used several different shipping companies based on where the shipment was going, the weight, value, or a myriad of other factors. We were having problems with delivery but since we started using FLAGSHIP DELIVERY INC. all has been fine.

Mike Ross
Co-Founder, Gogroups Ltd, USA

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