The air cargo industry saw a pick-up in demand in the first quarter of 2014, however it continues to be pressured by yield weakness and high jet fuel prices, a new IATA analysis shows.
Jet fuel prices were stable in January and February, coming down 4% compared to the end of 2013. Despite this, the prices are still high at an average of $135 per barrel in these months, says IATA.
While business growth is growing, on-shoring could limit trade growth and traffic growth seen over the past several months, says IATA.
Heads of cargo companies say they are more optimistic about the air freight outlook, says IATA.
"Looking ahead, cargo heads surveyed in January 2014 remain broadly optimistic, expecting traffic growth to increase and yields to remain stable," says the report.
Global air freight grew 4.5% in January compared to the same month in 2013, shows IATA data released earlier this month.