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IATA Quarterly Air Cargo Market Analysis

World Trade – Air Cargo

Open Eyes Opinion {source: IATA}

The latest IATA quarterly Cargo Market Analysis (Q1 2015)

Key points:

  • Financial performance in the cargo business remains poor and does not deliver adequate returns for investors.
  • Overcapacity has resulted in lower load factors and has placed downward pressure on yields.
  • Lower jet fuel prices may provide temporary relief to some carriers but are not expected to have a lasting impact on cargo business profitability as jet fuel price reductions will be passed on to consumers.
  • If lower fuel prices persist it will boost demand for air cargo services but favorable impact on financial performance of the cargo business will only be achieved if coupled with capacity discipline.
  • Underlying economic demand drivers remain positive and business confidence continues to signal expansion in manufacturing activity but with dampened expectations.
  • Risks remain high as deepening of the Russian-Ukraine crisis, uncertainty in oil price, turmoil in the Middle East and continued concerns around sovereign debt of EU member states weigh on confidence.

However, continued positive demand for air-freighted commodities, as indicated by expansion in semi-conductor shipments, are a potential source of optimism for the year ahead.

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Copyright 2015

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