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Freight capacity (measured in available freight tonne kilometres or AFTKs), rose by 3.9% compared to September of last year — less than half the pace of demand growth. This is positive for industry load factors, yields, and financial performance.
It appears that the industry has passed a cyclical growth peak. The upward trend in seasonally-adjusted freight volumes in Q3 has eased and the inventory-to-sales ratio in the US is now trending sideways. This indicates that the period when companies look to restock inventories quickly — which often gives air cargo a boost — has ended.
With year-to-date demand growth of 10.1%, the IATA forecast of 7.5% growth in air freight demand for 2017 appears to have significant upside potential even if the peak of the economic cycle has passed.
Airlines in all regions reported an increase in year-on-year demand in September.