English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese
new-ocean-carrier-alliances-to-shake-things-upGENEVA/BRUSSELS: March 22, 2017. The impending operation of three ocean box alliances on April 01 has prompted fears of capacity...
volga-dnepr-paid-former-u-s-national-security-advisorWASHINGTON, DC: March 20, 2017. As Congressional hearings begin on possible connections between the Trump presidential election bid...
lufthansa-group-reports-rise-in-net-profitFRANKFURT: March 16, 2017. The Lufthansa Group has reported a 4.6 rise in net profit to €1.77 billion in 2016 on a 1.2 percent drop in...
another-airline-level-for-iagBARCELONA: March 17, 2017. International Airlines Group (IAG) will begin flights from Barcelona to Los Angeles, Oakland, Punta Cana in...
european-commission-re-imposes-cargo-finesBRUSSELS: March 17, 2017. The European Commission has renewed its decision to fine 11 airlines €776.46 million for operating an air...
air-cargo-stuck-in-the-16th-centuryABU DHABI: March 14, 2017. Speaking at the opening of the 11th World Cargo Symposium, IATA director general and CEO Alexandre de...

H1 2015 air cargo revenue down 9.3 percent

August 01, 2015: Worldwide air cargo developments in June did not differ much from those in May.

Year-over-year (YoY) volume growth was slightly higher this time (+2.6% vs. 1.8%), overall yield (in USD) fell again by 2% MoM, yield excluding charges stood its ground, and Africa (+5%) and the Middle East & South Asia (MESA: +6.4%) were again among the best performing origins volume-wise.

What changed markedly was the performance of the origin Europe, with YoY volume growth of 5.9% (-1.2% in May). The origin Asia Pacific recorded a YoY volume growth of only 0.4% (+1.7% in May). Incoming air cargo increased most in the regions MESA (+9.8% YoY) and North America (+6.9% YoY).

Being at the year's halfway point, how is 2015 shaping up?

Worldwide revenue (in USD) was down by 9.3% vs. H-1 2014.

Among the largest 100 city pairs in our database, those outside the transpacific market virtually all suffered a considerable revenue loss YoY. Particularly the main O&D's between Asia Pacific and Europe suffered heavily, with revenue losses varying between 13% and 47% of the previous year's revenues, due more to yield deterioration than to volume loss.

Of the top-50 traffic streams outside the transpacific market, only three recorded a positive revenue development: Nairobi-Amsterdam, Chicago London and Mumbai-London. Of the absolute volume growth worldwide, 37.5% came from pharmaceuticals and perishable only. Top-20 Forwarders as a group grew less in volume than all other forwarders taken together, whilst half of their group suffered a yield deterioration larger than the worldwide average.

Looking at a somewhat longer period, we see that the demand driving air cargo volumes differs considerably from one product category to another. We noted the following trends between H-1 2012 and H-1 2015:

The growth in perishables was largest to MESA (+59%) and Asia Pacific (+35%). Perishables transport to Europe and North America lagged behind with growth figures of around 15% only.

In pharmaceuticals, again Asia Pacific (+74%) and MESA (+66%) absorbed most of the growth. Looking at the total demand, the destinations MESA and North America both grew with 17%, whilst Europe (+3%) and Latin America (-7%) clearly lost appetite.

Last but not least, we compared yield developments since 2008. Our database contains the worldwide data of more than 50 – mostly large - airlines and more than 16,000 agents (and many more agent locations). Thus, our 12 interregional yield indices, as shown monthly on our website under the heading INDEX, provide a good insight how strongly yield developments (including fuel surcharges) differ from one market to another.

Here are some of the most striking differences between the various USD-yield developments between June 2008 and June 2015: It will not come as a surprise that none of the 12 interregional markets saw a yield increase.... The best performing market was North America to Asia Pacific, where the yield decrease could be limited to -9%. In all other markets, the decreases ranged from -22% (MESA to Europe) to -41% (Asia Pacific to Europe).

- WorldACD provides air cargo market data based on airline sources covering all countries.

- powered by Quickchilli.com -