The International Air Transport Association (IATA) has released data for global air freight markets showing demand picked up in February despite a challenging operating background.

The IATA report reads: "Several factors favored air freight in February compared to January. On the demand side, manufacturing activity picked up rapidly after the start of the Lunar New Year holiday in February. Capacity was positively impacted by the general and gradual easing of Covid-19 travel restrictions, fewer flight cancellations due to Omicron-related factors (outside of Asia) and fewer operational interruptions in winter weather.

Global demand, measured in tonne-kilometres for freight (CTKs), was 2.9 percent higher than in February 2021 (2.5 percent for international operations). Adjusting the equation for the impact of the Lunar New Year (which can cause reporting volatility) by taking the average of January and February performance, demand grew 2.7 percent year-over-year. As freight volumes continued to rise, the pace of growth slowed from year-over-year growth of 8.7 percent in December.

Capacity was 12.5 percent above February 2021 (8.9 percent for international operations). While this is positive, capacity remains limited compared to pre-COVID-19 levels, 5.6 percent below the February 2019 level.

General consumer price inflation for the G7 countries stood at 6.3 percent year-on-year in February 2022, the highest since late 1982. While inflation normally erodes purchasing power, it is offset by increased savings from the pandemic.

The impact of the Russian invasion of Ukraine had a limited effect on February's performance globally as it emerged towards the end of the month. The negative effects of war and related sanctions (particularly higher energy costs and reduced trade) will become more visible from March.

“Air freight demand continued to grow despite growing challenges in the trade environment. That is unlikely to be the case in March as the economic impact of the war in Ukraine materialises. Sanction-related shifts in production and economic activity, rising oil prices and geopolitical uncertainty will take its toll on airfreight performance," said Willie Walsh, director general of IATA.

Asia-Pacific airlines saw their air cargo volumes increase by 3.0 percent in February 2022 compared to the same month in 2021. Available capacity in the region increased by 15.5 percent compared to February 2021, but remains severely limited compared to pre-Covid-19 levels, 14.6 percent lower than February 2019. Zero-Covid-19 policies in mainland China and Hong Kong are negatively impacting performance.