IATA: 2020 will be a better year for air cargo, with 2020 cargo volume up 2.0% compared to 2019.
In 2019, cargo transportation was particularly affected by economic uncertainty and global trade tensions, Alexandre de Juniac, CEO and CEO of the International Air Transport Association (IATA), said during a press conference on Wednesday, December 11, 2019, as part of the Global Media Days in Geneva.
Alexandre de Juniac said:
“An economic slowdown, trade wars, geopolitical tensions and social unrest, and continued Brexit uncertainty have combined to create a more unfavorable environment for airlines than expected. Nevertheless, the industry managed to achieve stability – decades without losses, both taking into account restructuring and cost optimization. It looks like 2019 will be the low point of the current economic cycle. The forecast for 2020 is somewhat more optimistic.”
According to a report published by IATA, the industry expects some recovery after the decline observed in world trade in 2019. Moderate global GDP growth is expected throughout 2020. The forecast says that the global aviation industry will generate a net profit of $29.3 billion in 2020, compared to a net profit of $25.9 billion expected in 2019 (downward revised from a forecast profit of 28 billion dollars in June).
IATA predicts that the volume of cargo transported in 2020 will increase by 2.0% compared to 2019, to 62.4 million tons. In 2019, 61.2 million tons of cargo were transported, this figure was the lowest figure in three years.
Average air freight rates in 2020 are expected to be $1.66/kg (2018 USD), 66% below 1998 levels.
In 2020, the number of unique corresponding cities served by airlines will grow to 23,162 (up 4.2% from 22,228 in 2019), up 126% from 1998 levels.
In 2019, for the first time since 2012, freight traffic fell year-on-year, with a 3.3% decline, the sharpest drop in freight traffic since 2009, when the global economic crisis raged. Although traffic volumes should increase in 2020, IATA expects profitability to still be reduced, with a decline of 3.0% projected in 2020, which can be considered positive compared to a forecasted decline of 5.0% in 2019.
The International Air Transport Association (IATA) represents 290 airlines worldwide, accounting for up to 83% of global air travel. The Association acts as a coordinator and representative of the interests of the air transport industry in such areas as ensuring flight safety, flight operations, tariff policy, maintenance, aviation security, development of international standards, etc. The IATA Association was established on April 19, 1945.
Based on http://www.aircargoworld.com/ http://www.iata.org/ and publicly available data.