The International Air Transport Association (IATA) has reported 2020 to be the worst year for air cargo demand, since performance recordings began. It has released data for global air freight markets showing that demand for air cargo decreased by 10.6% in 2020, compared to 2019. This was the largest drop in year-on-year demand since IATA started to monitor cargo performance in 1990, outpacing the 6% fall in global trade in goods.
Economic conditions are reportedly picking up as we move into 2021. The new export orders component of the manufacturing Purchasing Managers’ Index (PMI) is in growth territory in both developed and emerging markets. And global industrial production has also recovered.
“Air cargo is surviving the crisis in better shape than the passenger side of the business. For many airlines, 2020 saw air cargo become a vital source of revenues, despite weakened demand. But with much of the passenger fleet grounded, meeting demand without belly capacity continues to be an enormous challenge. And, as countries strengthen travel restrictions in the face of new coronavirus variants, it is difficult to see improvements in passenger demand or the capacity crunch. 2021 will be another tough year,” said Alexandre de Juniac, IATA’s Director General and CEO.
Strong variations were evident in the regional performance of air cargo in 2020. North American and African carriers reported an annual gain in demand in 2020 (+1.1% and +1.0%, respectively), while all other regions remained in negative territory compared to 2019. International demand fell in all regions with the exception of Africa which posted a 1.9% increase in 2020 compared to the previous year.
Source: IATA