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            january 26, 2020

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Fuel prices pick up and load factors decline in April: IATA


The International Air Transport Association's (IATA's) latest Airlines Financial Monitor indicates that cargo load factors fell 0.5 per cent in April compared to the same month last year to levels last seen at the start of 2017.
Capacity (available freight tonne-km, AFTK) increased 5.1 per cent year on year in April while demand as measured in revenue freight tonne-km (FTK) rose 4.1 per cent, reports London's Air Cargo News.
The report added: "The upward trend in seasonally adjusted FTKs has fallen below that of AFTKs over the past eight months or so. In fact, April was just the second time in 21 months in which the annual pace of capacity growth has exceeded that of demand."
IATA said that unless demand picks up in the coming months, annual FTK growth will slow towards mid-2018.
Fuel costs continue to be a concern for airlines, with oil prices having risen due to tighter supply as well as ongoing geopolitical tensions. The price of Brent crude oil stood at US$76 a barrel, almost 60 per cent higher than a year ago, at the time the report was prepared. However, IATA noted that oil prices are expected to dip below the $70 a barrel mark by 2020.

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