Oleg Sergeev: What to expect from March 2021 for the air cargo market?

This question worries many of my colleagues and, of course, me personally as an expert in the aviation industry. First, let's see what IATA thinks about this and what they advise to do.

The association expects the air cargo market to recover in March 2021 to 2019 levels. The association bases its forecast on world statistics, according to which the decline in demand in 2020 was 10.6% compared to the previous one. At the same time, load factors, profitability and revenues have reached record highs, and after the low in April, the volume of cargo transportation is continuously recovering.

What to expect from March 2021
What to expect from March 2021

After analyzing the results of 2020, an unusual year for air cargo, IATA notes a change in consumer behavior regarding online shopping. Shoppers are increasingly choosing convenience, and online shopping has often become a real necessity. Since the start of the pandemic, e-commerce has grown to 18% of total retail sales in 2020, four points higher than forecast. The IATA believes that in order to do business successfully, air carriers need to restructure their strategies to focus on e-commerce. Since last year, cargo transportation brought airlines 36% of profits, then the airlines have even more reasons to transform and increase the volume of e-commerce, IATA notes.

In a study conducted with PwC, IATA analyzed the main challenges airlines must face to stay afloat in the current digital shift. The association has identified five key strategies that airlines can follow to adapt to the new demands of shippers. I will write about them in detail in the next article.

Reality dictates its terms to airlines, including ZetAvia, which operates charter flights in the Middle East, Europe, Africa and other regions of the world on Il-76T and Il-76TD aircraft. It is possible that such a restructuring will become the key to maintaining a leadership position and success in the market for many airlines.

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