Global air cargo demand decreased by over 10 percent in 2020

IATA says capacity shrank by 23.3 percent due to loss of available belly cargo space as passenger aircraft stay parked

The International Air Transport Association (IATA) released data for global air freight markets showing that demand for air cargo decreased by 10.6% in 2020 (-11.8% for international operations), compared to 2019.

IATA notes that this was the largest drop in year-on-year demand since IATA started to monitor cargo performance in 1990, outpacing the 6% fall in global trade in goods.

Global capacity, measured in available cargo tonne-kilometers, shrank by 23.3% in 2020 (-24.1% for international operations) compared to 2019, because of the loss of available belly cargo space as passenger aircraft remain parked.

Some improvements were seen towards year end as December global demand was only 0.5% below previous-year levels (-2.3% for international operations). Global capacity was still 17.7% below previous-year levels (-20.6% for international operations). That is much deeper than the contraction in demand, indicating the continuing and severe capacity crunch.

With the stalling of the recovery in passenger markets, there is no end in sight for the capacity crunch.

“Air cargo is surviving the crisis in better shape than the passenger side of the business. For many airlines, 2020 saw air cargo become a vital source of revenues, despite weakened demand. But with much of the passenger fleet grounded, meeting demand without belly capacity continues to be an enormous challenge. And, as countries strengthen travel restrictions in the face of new coronavirus variants, it is difficult to see improvements in passenger demand or the capacity crunch. 2021 will be another tough year,” said Alexandre de Juniac, IATA’s Director General and CEO.