Advancing UK Aerospace, Defence, Security & Space Solutions Worldwide

Aerospace

Air cargo ends 2014 with rising demand

The International Air Transport Association (IATA) released full-year air cargo data for 2014 showing 4.5% demand growth compared to 2013 measured by freight tonne kilometres (FTKs) - a significant acceleration from the 1.4% recorded in 2013 over 2012.

Air cargo market expansion gathered momentum as 2014 progressed. The year finished on a positive note, with growth in December accelerating to 4.9%, compared to December 2013. The vast majority of the growth in 2014, however, was in the Asia-Pacific and Middle East regions, which respectively contributed 46% and 29% of the expansion in FTKs. Growth was recorded in all other regions, but was particularly weak in Latin America.

Advertisement
Teledyne

"After several years of stagnation, the air cargo business is growing again. This is largely being driven by the uptick in world trade over the second half of 2014. Recent concerns over the health of the global economy and a corresponding fall in business confidence have not yet impacted air cargo. But it is a downside risk that will need to be watched carefully as we move through 2015," said Tony Tyler, IATA’s Director General and CEO.

Dec 2014 vs. Dec 2013

FTK Growth

AFTK Growth

FLF

International

5.1%

5.6%

49.8%

Domestic

3.8%

0.8%

33.1%

Total Market

4.9%

4.6%

46.4%

 

YTD 2014 vs. YTD  2013

FTK Growth

AFTK Growth

FLF

International

4.8%

4.2%

49.2%

Domestic

2.8%

1.8%

31.1%

Total Market

4.5%

3.7%

45.7%


Regional analysis
Performance varied widely by region with the most significant growth being recorded by airlines in Asia-Pacific and the Middle East. All regions, with the exception of Latin America, reported a strengthening of demand in December.
Advertisement
Leonardo RT

• Asia-Pacific carriers grew 5.9% in December compared to December 2013, and 5.4% for 2014 as a whole. Volumes have benefitted from increasing import demand in addition to continuing manufacturing strength. Japanese and Chinese markets were particularly important contributors. Overall in 2014, capacity expanded 5.7% leading to a slight fall in load factor to 55.4%, although this remains the strongest load factor of any region.
• North American airlines reported demand growth of 2.8% in December and 2.4% for 2014 as a whole. After a slow, weather-affected start to the year, growth accelerated, driven by import and export demand. Carriers in the region cut back capacity in 2014 by 0.5%, helping to underpin the load factor (35.3%).
European airlines saw FTKs expand 2.3% in December, and by 2.0% in 2014 overall. The Eurozone remains weak and close to recession, with the effects of Russian sanctions also having an impact. Load factors also fell in 2014 as capacity expanded 3.0%.
• Middle Eastern carriers enjoyed the strongest growth of any region, expanding 11.3% in December and 11.0% for the year as a whole. Airlines in the region have extended their networks and grown capacity by 11.1% to make the Middle East a hub for freight traffic. In fact they have been responsible for over 37% of the total increase in global freight capacity in 2014.
• Latin American airlines reported FTKs falling 4.5% in December. This was the only region to report a decline. The picture for 2014 as a whole was growth of 0.1%. Latin American volumes have been affected by economic slowdown across the region, particularly in Brazil and Argentina. Capacity grew by 0.3% in 2014.
• African carriers expanded FTKs by 12.2% in December and 6.7% for the year as a whole. Although major economies Nigeria and South Africa underperformed during parts of 2014, regional trade activity held-up, supporting demand for air transport of goods. Capacity rose just 0.9% for the year as a whole, helping to strengthen the load factor.

"Despite the improving growth trend, big challenges remain. Yields declined for the third straight year in 2014, with no immediate prospect of improvement. Cargo revenues remained basically unchanged at $62 billion, some $5 billion below their 2011 peak. To move forward, the industry is focusing on providing a stronger value proposition to meet evolving customer needs. That’s what is driving efforts such as cutting shipping times, ensuring high-quality handling of temperature-sensitive goods, or benchmarking quality to improve customer transparency. It’s all about delivering value as a supply chain with a strong vision of the future," said Tyler.

This focus on value is delivering change. For example, in 2014 electronic air waybill penetration reached 22% and airlines are targeting 45% penetration by the end of 2015.

 

Advertisement
General Atomics LB
Stansted unveils new brand

Aerospace

Stansted unveils new brand

4 July 2025

London Stansted Airport has unveiled a new brand as it continues to welcome record-breaking passenger numbers and progresses plans to increase capacity and transform the airport experience.

RTX

Aerospace

RTX's Collins Aerospace opens Wolverhampton facility

4 July 2025

RTX's Collins Aerospace has expanded its aircraft electrification capabilities with the introduction of a new engineering centre of excellence in Wolverhampton, UK.

Serco appoints Keith Williams as Chair

Aerospace Defence Security Space

Serco appoints Keith Williams as Chair

4 July 2025

Serco has appointed Keith Williams to the Board as a Non-Executive Director and Chair designate.

Bristol Airport launches Supply Chain Sustainability Charter

Aerospace

Bristol Airport launches Supply Chain Sustainability Charter

4 July 2025

Bristol Airport has announced the launch of a new Supply Chain Sustainability Charter, designed to inspire and support more sustainable practices across its business supply chain.

Advertisement
Leonardo RT
Vertical Aerospace and Bristow expand AAM solutions

Aerospace

Vertical Aerospace and Bristow expand AAM solutions

4 July 2025

Vertical Aerospace and Bristow are expanding their strategic partnership to bring advanced air mobility (AAM) into commercial operation.

Airframe Designs aligns with US NCAMP standards

Aerospace Defence Security

Airframe Designs aligns with US NCAMP standards

3 July 2025

Airframe Designs has aligned its material systems with the US National Centre for Advanced Materials Performance (NCAMP) which works with the Federal Aviation Administration (FAA) and industry partners to support its existing testing processes.

Advertisement
Gulfstream RT