2017 was undoubtedly a record-breaking year for the air cargo industry. After nearly six years of anaemic demand, resurgent global economic conditions coupled with increasing import and export orders, helped stoke the air freight industry to its best performance. The air cargo industry in North America, like any other part of the world, also witnessed a sharp rebound and is well on its way to make significant investments to bolster growth
For North American carriers, freight demand grew 5.4 percent year-on-year in December 2017 while capacity inched up 2.2 percent. This contributed to an annual growth in 2017 of 7.9 percent. Capacity grew by 1.6 percent in the 2017 calendar year, IATA’s recently released data stated.
The strength of the US economy and the US dollar attributed to the increase in the inbound freight market in recent years. Looking towards 2018, the recently agreed US tax reform bill may help to support freight volumes in the period ahead although this may be offset by the recent weakening in the dollar, the industry body forecasted.
“It’s refreshing to see renewed demand for air cargo after several years of industry revenue decline. When I think about 2017 overall, I am reminded that the entire air freight industry revenue contracted 28 percent between 2010 and 2016 while annual growth in cargo capacity grew 18 percent between 2011 and 2016. This put a tremendous downward pressure on yields. It’s difficult for any business to make needed investment in products and services in that kind of operating environment, so 2017 and especially the December quarter was clearly a welcome change,” said Eric Wilson, managing director global sales cargo, Delta Cargo.
“Throughout 2017, we saw load factors, yields and revenue all improve. And while cargo is still a very tough and competitive business, the developments in the course of the year were certainly the most positive that we’ve seen in a very long time. Here at American, we reported that our growth outpaced the industry and our global team worked really hard to make that happen. In fact, we delivered improved operational performance at a time when volumes increased by over 15 percent,” revealed Lisa Oxentine, managing director, Global and Key Accounts – Cargo Sales, American Airlines.
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