Last year saw a couple of impressive growths regarding airfreight and transportation. We saw a year over year (YOY) growth of 4.5 percent for worldwide air cargo volume. Playing off of this fact airfreight saw a 9 percent growth, which is the most significant growth since 2010. Now, this all sounds well and good for last year, but what does that mean for a year that we have only been in for a month?
An Optimistic Future
During the beginning of January, a survey done by a passenger and cargo executives for the IATA Airlines Business Confidence Index. They found that there was an improvement in the year-on-year profitability in the final quarter of the year. The
IATA expects a robust demand growth on both freight and passenger sides of the business.
There are some who believe airfreight shipping will take a hit due to the rising price of fuel, but the overall consensus is that this deficit will counteract from the from the final estimate.
There seem to be many conflicting ideas over how the profits will change throughout the year, but they seem mostly positive. The survey found that 41 percent reported an annual increase in freight yields, which was the second highest share since July 2011.
The purpose this survey has served is to identify some specific company’s profit increase over the previous year. They then run this parallel to earlier years in which the profit percentage increase mirrors that of those years. They can then see what the pro
fit increase for the following year was like, and can then make an educated estimation of how the coming year will be.
With the committee that did this research assured that this year would see an increase in air cargo profits.