The International Air Transport Association (IATA) released data for global air freight markets showing that growth continued to slow in May. Compared to May 2014, growth in freight tonne kilometers (FTK) was 2.1 per cent, the slowest rate this year and outpaced by a capacity expansion of 4.3 per cent. On a year-to-date basis, freight volumes are up four per cent on the previous year, but much of that growth was realised in the latter part of 2014.

Carriers in most regions, with the exception of those based in the Middle East, saw weak growth or even contractions. In aggregate, airlines in North and Latin America and Europe reported that their freight business was smaller in May 2015 than in the same month of 2014. Carriers in Asia-Pacific experienced slow growth as a result of poor import/export performance.

“Cargo growth has undoubtedly come off the boil. The expansion in volumes we saw in 2014 has ground to a halt and load factors are falling. Some economic fundamentals still point to a rebound in the second half of the year, but we have to recognise that business confidence is flat and export orders in decline. There is also the risk of a shock to the economic system of a ‘Grexit’ from the Eurozone,” said Tony Tyler, IATA’s director general and CEO in reference to the Greek crisis.