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Author Name: Dion Suen
According to the latest market forecast of the IATA International Air Transport Association, it is expected that the air cargo volume will return to the level close to 2019 next year. The Aviation Association stated that the improvement of business confidence and the important role that air cargo should play in vaccine distribution is expected to increase the volume of cargo to 61.2 million tons, which is basically the same as the volume of 61.3 million tons in 2019.
IATA also expects that due to the slow recovery of passenger capacity in the abdomen, coupled with the increase in the proportion of time- and temperature-sensitive freight, passenger traffic will continue to be tight, and the yield will further increase by 5%. This will help achieve the strong performance of freight revenue, which is expected to rise from USD 117.7 billion this year and USD 104.2 billion in 2019 to an all-time high of USD 139.8 billion.
The International Air Transport Association said: "Cargo business is expected to continue to maintain strong performance." Looking at this year's performance, cargo volume fell 11.6% year-on-year to 54.2 million tons, but due to the shortage of capacity caused by the reduction of belly hold business, revenue growth was driven year-on-year 14.9%, to 117.7 billion US dollars.
Data from the IATA shows that the overall cargo capacity dropped by about 24% last year (abdominal capacity dropped by about 45%), while revenue increased by 30%. The importance of the freight industry to airlines has also increased. In 2019, freight industry revenue accounted for 36% of total revenue, compared with 12% last year.
Although the air cargo industry has a mixed blessing in 2020, the overall outlook for airlines is not optimistic, with the industry reporting record losses. The industry is expected to have a net loss of US$118.5 billion this year and a net loss of US$38.7 billion in 2021. However, IATA does expect airlines to begin profitability in the fourth quarter.
Source: http://ow.ly/i4Wc50CyUbH