Air cargo business on fast growth track in Mideast

Middle East carriers enjoyed strong cargo transport growth in December 2014, expanding 11.3 percent month on month and 11.0 percent for last year as a whole, International Air Transport Association (IATA) reported Wednesday.

The Middle East performed far better than the global average growth which saw full-year air cargo data for 2014 showing 4.5 percent demand growth compared to 2013 measured by freight tonne kilometers (FTKs).

Airlines in the Middle East have extended their networks and grown capacity by 11.1 percent to make this region a hub for freight traffic, said IATA.

And the increase has been responsible for over 37 percent of the total growth in global freight capacity in 2014.

"After several years of stagnation, the air cargo business is growing again. This is largely driven by the uptick in world trade over the second half of 2014," said Tony Tyler, the CEO and Director General of IATA.

Nevertheless, global economic challenges kept cargo revenues at bay, he added.

"Despite the improving growth trend, big challenges remain. Yields declined for the third straight year in 2014, with no immediate prospect of improvement," said Tyler.

"To move forward, the industry is focusing on providing a stronger value proposition to meet evolving customer needs," he added.