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Air Freight Slowdown Continues

Global air cargo demand dropped in June, with only airlines based in the Middle East and Africa reporting an increase.
North American airlines experienced a decline of 3.3 per cent year-on-year and capacity grew 2.8 per cent. The positive impact of a modal shift to air as a result of the West Coast ports strike has faded and economic performance, despite some improvement in the second quarter, is subdued. Growth for the first six months of the year was -0.4 per cent.
 Middle Eastern carriers saw the strongest growth with demand expanding by 15.3 per cent, and capacity rose 19.2 per cent. Airlines in the region have pursued a successful hub strategy connecting both long- and short-haul markets. Although some major economies in the region have seen slowdowns in non-oil sectors, economic growth remains generally robust, which is also helping to sustain demand for air freight. Growth for the year-to-date is running at 14 per cent.