The International Air Transport Association (IATA) has projected that the global air cargo revenue is expected to rise to a record of $175 billion, with yields expected to grow by 15% by the end of 2021.
The disclosure was made by the global aviation body via a statement issued on Tuesday.
According to the statement, which was seen by Nairametrics, the prospect of the cargo segment in the short and long-term is strong.
What IATA is saying about growth
It stated, “Indicators such as inventory levels and manufacturing output are favorable, world trade is forecast to grow at 9.5% this year and 5.6% in 2022. The e-commerce continues to grow at a double-digit rate, and demand for high-value specialized cargo – such as temperature-sensitive healthcare goods and vaccines – is rising.
“This year cargo demand is expected to exceed pre-crisis (2019) levels by 8% and revenues are expected to rise to a record $175 billion, with yields expected to grow by 15%. In 2022 demand is expected to exceed pre-crisis (2019) levels by 13% with revenues expected to rise to $169 billion although there will be an 8% decline in yields.
News continues after this ad
“The surge in demand for air cargo and attractive yields are not without complications. Pandemic restrictions have led to severe global supply-chain congestion and created hardships for aircrew crossing international borders. Resourcing and capacity, handling and facility space and logistics will be an issue.
“This will create further operational challenges for our industry that must be planned for now. But we have demonstrated resilience throughout the crisis and with that same focus we will overcome these challenges.”
News continues after this ad
Brendan Sullivan, IATA’s Global Head of Cargo, explained that it is important for the air cargo industry to continue working together at the same pace, with the same levels of cooperation as during the COVID-19 pandemic to overcome future challenges and build industry resilience.
Making the call at the 14th World Cargo Symposium (WCS), which opened in Dublin, Sullivan said, “Air cargo is a critically important industry. This pandemic reminded us of that. During the crisis, it has been a lifeline for society, delivering critical medical supplies and vaccines across the globe and keeping international supply chains open. And for many airlines, cargo became a vital source of revenue when passenger flights were grounded.
“In 2020, the air cargo industry generated $129 billion, which represented approximately a third of airlines’ overall revenues, an increase of 10–15% compared to pre-crisis levels. Looking towards the future, the outlook is strong. We need to maintain the momentum established during the crisis and continue building resilience post pandemic.”
What you should know
IATA had stated that $143.8 million in airline revenues are blocked by the Nigerian government from the sale of tickets, cargo space, and other activities. It added that nearly $1 billion in airline revenues are blocked by governments across the globe.
IATA in a statement released recently disclosed that international passengers that flew from Nigeria and across the globe dropped to 1.8 billion from 4.5 billion recorded in 2019. This represents a decrease of 60.2% in traffic and the lowest recorded since around 1950.