Page 50 - World Airnews Magazine May Edition 2021

CARGO

AFRICAN AIRLINES SEE JUMP IN

CARGO DEMAND

much belly capacity will be available for recovery has driven cargo demand.
air cargo. Being able to efficiently plan International air travel yields are, however,
Global demand for air cargo is that into air cargo operations will be a key desperately low and airlines are unable
growing and African airlines are seeing the element for overall recovery." to stop cash burn due to low load factors.
same trend. IATA's February 2021 data for global Unfortunately, cargo levels for most
This is according to the latest data air cargo markets shows that air cargo airlines are too low to offset the lack of
released by the International Air Transport demand continued to outperform passenger traffic," explained Pearce.
Association. pre-Covid-19 levels with demand up 9% "Cargo business still faces a capacity
Cargo business still faces a capacity over February 2019. Global demand, challenge, because during normal times
challenge, because during normal times measured in cargo ton-kilometres, was about 50% of air cargo was transported
about 50% of air cargo was transported in up 9% compared to February 2019 and up in the holds of passenger aircraft. Yet,
the holds of passenger aircraft. 1.5% compared to January 2021. currently the majority of international air
African airlines' cargo demand in The recovery in global capacity, travel markets are more than 15% less
February jumped by 44.2% compared to measured in available cargo tonne- than before the coronavirus crisis."
the same month in 2019 - the strongest of kilometres, stalled owing to new capacity Supply chain disruptions and the
all regions in the world, the International cuts on the passenger side as governments resulting delivery delays have led to long
Air Travel Association (IATA) announced tightened travel restrictions due to the supplier delivery times. This typically
recently. recent spike in Covid-19 cases. Capacity means manufacturers use air transport,
shrank 14.9% compared to February 2019.
Expansion on the Asia-Africa trade which is quicker, to recover time lost
Because comparisons between 2021
routes contributed to the strong growth. and 2020 monthly results are distorted during the production process. The level
Africa has about 2.1% of the total air cargo by the extraordinary impact of Covid-19 of inventories also remains relatively low
traffic market in the world. during February 2020, IATA comparisons compared to sales volumes. Historically,
IATA represents some 290 airlines were made to February 2019, which still this has meant that businesses had to
comprising 82% of global air traffic. followed a normal demand pattern. quickly refill their stocks, for which they
"Global air cargo demand is not just also used air cargo, according to Pearce.
recovering from the Covid-19 crisis, it is OPERATING CONDITIONS SUPPORTIVE "If you did not have air freight operating
growing. With demand at 9% above pre- the way it is, then global supply chains
crisis levels, one of the main challenges Operating conditions remain supportive for would be in a very difficult situation," said
for air cargo is finding sufficient capacity. air cargo, according to IATA research. These Walsh.
This makes cargo yields a bright spot in an conditions include the manufacturing "Clearly the demand for air cargo is
otherwise bleak industry situation," said sector improving. quite strong. A lot of air cargo used to
new IATA CEO Willie Walsh during his first IATA chief economist Brian Pearce be carried in the bellies of passenger
briefing. commented that the role of air transport aircraft. Now, with significant constraints
"It also highlights the need for clarity across Africa has been critical in supplying on the passenger side, we have seen
on government plans for a safe industry goods. limited capacity for cargo while passenger
restart. Understanding how passenger "The story of February is one of cargo demand is lower. On the passenger side it
demand could recover will indicate how strength. A V-shaped global economic is clearly very challenging." Q

World Airnews | M ay Extra 2021
— 3 —