Cargo capacity in focus as freight demand booms
Measured steps
The International Air Transport Association said the air cargo sector had a volatile first quarter, as the global economy continued its recovery from the effects of the COVID-19 pandemic.
Overall demand slipped back below pre-COVID-19 levels in March, and most indicators of the fundamental drivers of air cargo demand are weak or weakening, the global air transport body said.
"While the trading environment is tough, there is some good news. Airlines are getting help in managing through the volatility with yields that have remained high and fuel prices that have moderated from exceptionally high levels," said IATA's Director-General Willie Walsh. "Looking ahead, with inflation reducing in G7 countries, policymakers are expected to ease economic cooling measures and that would stimulate demand."
Middle Eastern carriers experienced a 5.5 percent year-on-year drop in cargo transportation volumes in March, though it was an improvement from February's 7.1 percent fall. Capacity, too, increased by 9.7 percent compared with March 2022.
In recent months, demand on Middle East-Europe routes has been trending upward, according to the IATA.
Etihad Cargo, the cargo and logistics arm of Etihad Airways, has also reinforced its commitment to the China market with the signing in April of a Memorandum of Understanding with China's SF Airlines, the cargo arm of SF Holding, which operates the largest air cargo fleet in the country.
Etihad Cargo operates 10 weekly freighter flights to China, including eight to Shanghai and two flights per week to Wuhan, Hubei province, in partnership with SF Airlines.
The new flights between Abu Dhabi and Wuhan will give Etihad Cargo greater access to 25 domestic Chinese destinations. SF Airlines will be able to transport goods with transit in Abu Dhabi and onward to Europe, the United States and Africa.
Etihad Cargo said it would increase flight frequencies to China in the coming months to further expand its network and meet increased demand from customers in the UAE and China.
"The addition of Wuhan to Etihad Cargo's Chinese network is the latest step in enhancing the carrier's capabilities in the region. These flights will further strengthen the relationship between the UAE and China and position Abu Dhabi as a global logistics and express hub," said Martin Drew, senior vice-president of global sales and cargo at Etihad Airways.
Meanwhile, Emirates SkyCargo, the cargo division of UAE-based air carrier Emirates, recently added two Boeing 747-400Fs to its freighter fleet, showing its strong confidence in the global cargo market despite the current environment of volatility.
Emirates SkyCargo said it is expecting 15 additional freighters to join its fleet from confirmed orders and its freighter conversion program, plus a boost in belly-hold capacity from new passenger aircraft deliveries starting with the Airbus A350s in the summer of 2024, followed by Boeing 777-Xs the year after.
Over the next decade, Emirates SkyCargo is expected to double its existing capacity, and add over 20 new destinations to its freighter network.
"While the current market volatility may cause others to hesitate, Emirates SkyCargo is pushing full steam ahead with our plans. The medium- to long-term projections for global air cargo show an upward trajectory of between 3 percent and 5 percent," said Nabil Sultan, divisional senior vice-president of Emirates SkyCargo.
"Combined with Dubai's strategy to double its foreign trade, and the economic activity happening in the markets around the Gulf, West Asia and Africa, the opportunity for Emirates SkyCargo is clear," Sultan said. "Emirates SkyCargo is also investing to develop new products, and speeding up digitalization and technological innovation."
