RIYADH: Middle Eastern carriers saw a 15% decrease in air cargo volumes compared to the same period last year, according to the International Air Transport Association, indicating that global economic headwinds continued to affect air cargo demand in October.

The organization's October report indicated that the impact of economic headwinds on the aviation industry could last until 2023. The organization represents approximately 290 airlines that account for 83 percent of all international air traffic.

Despite continued adversity, air cargo has continued to show resilience. Cargo demand grew by 3.5 per cent in October compared to September, despite a less than exceptional October 2021 performance.

Also Read: RBI's MPC likely hike policy rate by 25-35 bps: Experts

This suggests that despite economic uncertainty, the end of the year will see a customary peak-season boost, according to IATA Director General Willie Walsh.

"It appears that the current economic uncertainties will persist into the new year and continued monitoring is required," he continued as 2022 draws to a close.

The volume of air cargo carried by Asia-Pacific airlines in October 2022 fell by 14.7% compared to the same month in 2021.

Lower levels of trade and manufacturing activity due to conflicts in Europe and sanctions related to China's Omicron had an impact on the decline in air cargo volumes in the Asia Pacific region, the report said.

Also Read: Possibility of lifting economic growth rate are low: Chidambaram

The conflict in Ukraine and high inflation rates mainly contributed to North American carriers reporting an 8.6 percent decline in cargo volumes in October 2022, while European carriers experienced an 18.8 percent decline.

Cargo volumes for carriers operating in Africa and Latin America declined by 8.3 percent and 1.4 percent, respectively, during the same time frame.

The report also claimed that air cargo demand, measured in cargo tonne-kilometres, fell 13.6% worldwide in October 2022, as compared to the same month in 2021.

“October 2021 capacity was down 0.6 per cent. Capacity rose 2.4 percent month-on-month in anticipation of the year-end peak season, but it was the first year-on-year increase since April 2022, according to the IATA report. Sal was down.

Also Read: Citi predicts that in 2023, global growth will slow to below 2%.

Global cargo capacity is set to increase by 2.4% in October 2022 compared to the same month last year.