AIR cargo demand in 2022 took “a significant step back” from 2021 levels and was close to 2019 performance, the International Air Transport Association has found.

The latest air cargo data from IATA covers demand and capacity in December last year as well as the full 2022 calendar year.

Global full-year demand in 2022, measured in cargo tonne-kilometres, was down 8% compared to 2021 (and down 8.2% for international operations).

Capacity in 2022 was 3% above figures reported in 2021 (up 4.5% for international operations).

And air cargo performance softened in December, global demand falling 15.3% below 2021 levels (down 15.8% for international operations).

IATA said 2022 ended “with mixed signals”. Global new export orders, an indicator of air cargo demand, stayed at levels seen in October.

New export orders were shrinking in major economies except Germany, the United States and Japan, where they grew.

Global goods trade decreased by 1.5% in November, down from a 3.4% increase in October.

“In the face of significant political and economic uncertainties, air cargo performance declined compared to the extraordinary levels of 2021,” IATA director general Willie Walsh said.

He said the decline brought air cargo demand to 1.6% below pre-pandemic levels.

“The continuing measures by key governments to fight inflation by cooling economies are expected to result in a further decline in cargo volumes in 2023 to -5.6% compared to 2019,” he said.

“It will, however, take time for these measures to bite into cargo rates. So, the good news for air cargo is that average yields and total revenue for 2023 should remain well above what they were pre-pandemic.

“That should provide some respite in what is likely to be a challenging trading environment in the year ahead.”

In 2022, Asia-Pacific airlines posted an 8.8% decrease in demand compared to 2021 and a capacity increase of 0.5% (but up 5.8% for international operations).

Demand in 2022 was down 7.8% and capacity down 17.2% from 2019 levels.

IATA said Asia-Pacific airlines recorded the worst performance of all regions in December, posting a 21.2% decrease in demand compared to 2021. Capacity fell 3.9% during the same period.

“Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China’s rising Covid cases,” IATA said in an update.

In North America, carriers reported a 5.1% decrease in demand in 2022 compared to 2021 and a capacity increase of 4.2%.

Demand in 2022 was 13.7% above 2019 levels and capacity was up 8.2%.

In December, airlines in the region reported an 8.5% decrease in demand for both global and international operations compared to 2021, while capacity fell 2.9% in the same period.

European carriers posted the worst year-on-year performance of all regions, with an 11.5% decrease in demand in 2022 compared to 2021.

During the same period, airlines posted a capacity increase of 0.5% for both global and international operations.

Demand in 2022 was 8.7% below 2019 levels and capacity was down 16.5% from the same period.

In December, airlines in the region posted a 17.4% decrease in demand compared to 2021, and capacity fell 7% during the same period.

“Airlines in the region continue to be most affected by the war in Ukraine,” IATA said.

In the Middle East, carriers reported a decrease of 10.7% for global and international demand in 2022 compared to 2021 and a 4.3% increase in capacity over the same period.

Demand in 2022 was down 1.6% from 2019 levels and capacity was down 6.3%.

In December, airlines in the region posted a 14.4% decrease in demand for both global and international operations compared to 2021. Capacity increased 2.8% during the same period.

Latin American airlines posted the strongest year-on-year performance of all regions, with an 13.1% increase in demand in 2022 compared to 2021. During the same period, airlines posted a capacity increase of 27.1%.

Demand in 2022 was 4.3% below 2019 levels, and capacity was down 14.3%.

In December, airlines in the region posted stagnant growth in demand compared to 2021, while capacity grew 27.6% during the same period.

And African airlines reported a 1.4% decrease in demand last year compared to 2021, and a 0.3% increase in capacity. Demand in 2022 was 8.3% above 2019 levels and capacity was down 15.3%.

In December, airlines in the region posted a 10% decrease in demand compared to 2021 levels, while capacity grew 1.3% during the same period.