Wednesday, January 27, 2021
Home Aviation Air cargo down but revenue spikes in 1H 2020

Air cargo down but revenue spikes in 1H 2020

Worldwide air cargo volume contracted by more than 18% in the first half of 2020 year-on-year, but airlines’ revenue was up almost 21% in the same period, according to the latest figures from WorldACD.

The double-digit growth in revenue was the result of a capacity shortage starting mid-March, said the air freight market analyst.

In terms of volume, the origins Middle East & South Asia (MESA) and Europe contracted the most, by 32% and 22%, respectively, in the first six months compared to the same period a year ago. In incoming traffic, Asia-Pacific and Europe each lost 16% year-on-year, while other regions lost more. The average rate of transporting one kilogram by air rose by 48% worldwide, with the increase largest from Asia Pacific (+76%) and smallest from Latin America (+10%).

The year-on-year volume decline in the first six months of the year was smallest in business originating in the Asia-Pacific region. Volumes from this region to Europe and North America were hit much less at -6% and -11%, respectively, than volumes to MESA (-15%).

Due to demand for personal protection equipment (PPE), China did not show any decrease in volume year-on-year and remained flat, but air charges from China to transport PPE goods soared by 136% compared to the first half of 2019.

As large parts of the world were in turmoil, demand for flowers fell less than average (-16%). The volume of high tech & other vulnerable goods dropped by 6% only, while the transport of pharmaceuticals, the evergreen in air cargo, grew 8% year-on-year, said WorldACD.

Month-on-month, worldwide volumes increased almost 3.5% from May to June. Coupled with a decrease in US dollar yields of 21%, this resulted in a revenue decrease for airlines of 19% month-on-month in June.

“In other words, the extreme results of April and May (great volume loss coupled with a large revenue increase) diminished somewhat. However, the sector is still far from what it used to be, as June worldwide showed a YoY volume decrease of 20% and a yield increase of 76%,” the report said.

Photo by Jerry Wang from Pexels

LEAVE A REPLY

Please enter your comment!
Please enter your name here

15 + seventeen =

- Advertisment -

Most Popular

- Advertisment -