IATA forecast 2020 air cargo growth of 2pc on profit of US$29 billion
THE International Air Transport Association (IATA) anticipates that cargo traffic will grow by two per cent in 2020, director general Alexandre de Juniac says
THE International Air Transport Association (IATA) anticipates that cargo traffic will grow by two per cent in 2020, director general Alexandre de Juniac says.
IATA is expecting a two per cent increase over the 61.2 million tonnes carried in 2019, as world trade rebounds. The 2019 tally represents the lowest aggregate tonnage figure in three years. The IATA forecast values international trade shipped by air next year at US$7.1 trillion, New York's FreightWaves reported.
Cargo revenues will slip for a third year in 2020, with revenues expected to total $101.2 billion, down 1.1 per cent from 2019, according to IATA.
The worldwide freight load factor, measured as a percentage of available freight tonne kilometres (AFTKs), is forecast at 46.3 per cent.
The global airline industry is expected to generate a net profit of $29.3 billion next year.
Airlines in Asia Pacific were the most exposed to weakness in world trade and cargo this year. The modest recovery in world trade will support profits next year in the region, according to the forecast.
IATA and the World Bank anticipate global GDP to expand by 2.7 per cent in 2020 (marginally above the 2.5 per cent growth in 2019). World trade growth is expected to rebound to 3.3 per cent from 0.9 per cent in 2019, with easing of some trade tensions expected.
The regional profit picture is mixed in both 2019 and 2020. Africa, the Middle East and Latin America are all expected to lose money in 2019, with carriers in Latin America returning to profit in 2020 as regional economies strengthen.
Financial performance is expected to improve or remain the same compared to 2019 in all regions except for North America, where expected capacity growth due to new aircraft deliveries could squeeze earnings, according to IATA.