, Singapore

Something's weird in the aviation sector

This graph shows sustained disparity in cargo and passenger growth is unusual.

 

 

According to CIMB, cargo has seen negative yoy growth for almost 18 consecutive months whereas passenger growth has been relatively resilient. That being said, CIMB says that sustained cargo weakness could lead to a bigger fall in passenger growth rates.

Nevertheless, CIMB points that while it does not have any concrete data that would show airfreight is returning with a vengeance, it says tech shipments  are at least showing some signs of life.

"Korean shipments have already been recovering while new orders for Taiwanese electronics are also stabilising gradually. Additionally, there are new tech products in the pipeline such as Apple’s
iPhone5 as well as potential consumption stemming from the launch of Windows 8. These product rollouts typically lead to a temporary boost in shipments," says CIMB.

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