Page 51 - World Airnews Magazine March 2021

NEWS DIGITAL

AFRICAN AIRLINES GAIN DESPITE

GLOBAL SLUMP IN DEMAND

By Wole Oyebade

wide, cargo load factors rose 7.7 per cent in without belly capacity continues to be an
2020. This contributed to increased yields enormous challenge. And, as countries
African region recorded a marginal and revenues, providing support to airlines strengthen travel restrictions in the face of
increase in air cargo demand for 2020, and some long-haul passenger services in new coronavirus variants, it is difficult to
despite a global decline due to the effects the face of collapsed passenger revenues. see improvements in passenger demand or
of the coronavirus pandemic. Improvements towards year-end were the capacity crunch. 2021 will be another
tough year,” de Juniac said.
The International Air Transport demonstrated in December when global Strong variations were evident in the
Association (IATA) data for global airfreight demand was 0.5 per cent below previ- regional performance of air cargo in 2020.
markets showed that global demand for air ous-year levels (-2.3 per cent for interna- North American and African carriers
cargo decreased by 10.6 per cent in 2020 tional operations). Global capacity was 17.7 reported an annual gain in demand in
compared to 2019. This was the largest per cent below previous-year levels ( 20.6 2020 (+1.1 per cent and +1.0 per cent,
drop in year-on-year (YoY) demand since per cent for international operations). respectively), while all other regions
IATA started to monitor cargo performance That is much deeper than the contraction remained in negative territory compared
in 1990, outpacing the six per cent fall in in demand, indicating the continuing and to 2019. International demand fell in all
global trade in goods. severe capacity crunch. With the stalling of regions except Africa, which posted a 1.9
However, African airlines saw demand the recovery in passenger markets, there is per cent increase in 2020 compared to the
grow by 1.0 per cent in 2020 compared no end in sight for the capacity crunch. previous year.
to 2019 (1.9 per cent for international Economic conditions are picking up in Asia-Pacific airlines reported a decline in
operations) and a fall in capacity of 17.3 2021. The new export orders component of demand of 15.2 per cent in 2020 compared
per cent (-15.8 per cent for international the manufacturing Purchasing Managers’ to 2019 (-13.2 per cent for international
operations). Index (PMI) is in growth territory in both operations) and a fall in the capacity of 27.4
African airlines posted the strongest developed and emerging markets. And per cent (-26.2 per cent for international
international growth of all regions in 2020 global industrial production has also operations). In December airlines in the
as well as in December. International recovered. region posted a 3.9 per cent decrease in
demand in the month grew by 6.3 per cent IATA’s director general and CEO, international demand compared to the
YoY. African airlines now have the same Alexandre de Juniac, said air cargo was previous year. After a pause in recovery
share of the global international cargo surviving the crisis in better shape than the in Q3, demand is improving, driven by a
market as carriers from Latin America (2.4 passenger side of the business. rebound in manufacturing activity and
per cent). International capacity decreased “For many airlines, 2020 saw air cargo export orders from China and South
by 21.6 per cent in December, a steepening become a vital source of revenues, despite Korea. International capacity remained
of the 18.6 per cent fall in November. weakened demand. But with much of the constrained in December, down 25.1 per
Due to lack of available capacity world- passenger fleet grounded, meeting demand cent. Q

NEWS DIGITAL

TRANSATLANTIC FLIGHTS

FUELLED BY RECYCLED WASTE

in SAF as part of its bid to decarbonise by 2050, said it would
investigate building a refinery with LanzaTech in the UK, as well as
British Airways said it will operate transatlantic flights partially a waste-to-fuel plant in partnership with Velocys.
powered by sustainable fuels as early as next year, according to The news came as the Dutch airline KLM claimed a world-first in
reports. using sustainable synthetic kerosene on a commercial flight from
The Guardian said BA will invest in a new US plant to be built Amsterdam to Madrid. Shell made 500 litres - just over 5% of the
in Georgia by LanzaJet “producing commercial-scale volumes of flight’s overall fuel burn - synthesised from CO² and water using
sustainable aviation fuel (SAF), made from ethanol derived from renewable energy sources.
agricultural and other waste”. Pieter Elbers, chief executive of KLM said, “The transition
The airline said the fuel would create 70% fewer carbon from fossil fuel to sustainable alternatives is one of the largest
emissions than conventional jet fuel. challenges in aviation.
However, the report said it is likely to only provide a tiny fraction “Fleet renewal contributed significantly to the reduction of
of BA’s overall fuel needs at first. CO² emissions, but the upscaling of production and the use of
SAF can be used to substitute for up to 50% of conventional jet sustainable aviation fuel will make the biggest difference for the
fuel but so far demonstration flights have blended only about 5% current generation of aircraft.”
of the greener fuel. Article courtesy : https://www.travelweekly.co.uk/articles/
BA owner, IAG, which has pledged to invest almost £300 million author/106

World Airnews | March Extra 2021
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