Air cargo will remain stagnant in 2014, says IATA
09 / 01 / 2014
AIR CARGO revenues are expected to be US$60bn this year and in 2014 – unchanged from 2007 levels, reveals IATA’s Global Economic Outlook.
The revenues have been made worse by the belly capacity arriving from the improving passenger business, which is adding to the downward pressure on cargo yields, the report says.
Airlines expect to carry 51.6 million tonnes of cargo in 2013, increasing to 52.5 million tonnes in 2014.
This modest increase in demand is expected to be offset by a decline in yields (-2.1 per cent in 2014).
The association also expects the global commercial airline industry to generate a net profit of $12.9bn this year and $19.7bn, or 2.6 per cent of revenues in 2014.
This represents an upward revision of $1.2bn this year and $3.3bn in 2014, which reflects the impact of lower jet fuel prices over the forecast period and the improvements to industry structure and efficiency already visible in quarterly results this year.
“We must temper our optimism with an appropriate dose of caution. It’s a tough environment in which to run an airline. Competition is intense and yields are deteriorating,” states Tony Tyler, director general and chief executive of IATA.
“Cargo volumes haven’t grown since 2010 and cargo revenues are back at 2007 levels. The passenger business is expanding more robustly.”