The International Air Transport Association (Iata), the representative body for the global air transport industry, has reported that, while revenues from air passenger operations have plummeted this year in comparison to last year, those from air cargo have gone up. Air passenger operations around the world have been hammered by travel bans and national lockdowns imposed by many countries to try and contain the Covid-19 pandemic.
Iata described air cargo as “the one bright spot” in an otherwise dismal situation. Total freight carried by air this year is forecast to total 51-million metric tons. Although this will be 10.3-million metric tons less than the figure for last year, there is now a great shortage in air cargo capacity, as a result of the grounding of so many passenger aircraft, which routinely carry cargo in their belly holds.
This shortage in capacity is expected to increase air cargo rates by about 30%. Iata predicts that air cargo revenues for this year will reach $110.8-billion, a near-record number. The figure for 2019 was $102.4-billion. As a result, air cargo should account for some 26% of the sector’s revenues in 2020, as against 12% last year.
As for 2021, the association expects air cargo’s higher profile in the industry to continue. “Strong cargo operations and comparatively low fuel prices will … give the industry a boost,” said Iata director-general and CEO Alexandre de Juniac.
Next year air cargo revenues should achieve a record figure of $138-billion. This will be a 25% rise in comparison to this year. It will amount to some 23% of commercial aviation’s total revenues, which would be about twice air cargo’s traditional share.
Iata expects air cargo demand to stay strong, because of businesses restocking at the start of an upturn in the global economy. However, the return of passenger aircraft to service will be slow, so constraining the increase in air cargo capacity. This will ensure air cargo yields remain steady at 2020 levels.