International Air Transport Association has warned that rising US-Iran tensions will threaten performance of regional airlines over the coming months
The International Air Transport Association (IATA) has warned that rising US-Iran tensions will threaten performance of Middle East-based airlines over the coming months.
IATA highlighted the issue of escalating geopolitical tensions in the region as it announced that air freight volumes in the Middle East decreased 3 percent in November compared to the year-ago period – an improvement over the 5.7 percent decrease in October. Capacity increased by 2.6 percent.
“Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally-adjusted freight volumes in the region have continued a modest upwards trend, which is a positive development for the region’s carriers,” it said, adding that the coming period could be challenging.
Globally, IATA said air cargo demand decreased by 1.1 percent in November compared to the same period in 2018. This marks the 13th consecutive month of year-on-year declines in freight volumes.
Despite the decline in demand, November’s performance was the best in eight months, with the slowest year-on-year rate of contraction recorded since March 2019.
Overall air cargo demand continues to face headwinds from the effects of the trade war between the US and China, the deterioration in world trade, and a broad-based slowing in global economic growth.
“Looking forward, signs of a thawing in US-China trade tensions are good news. But trading conditions at present remain very challenging,” said Alexandre de Juniac, IATA’s director general and CEO.
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