Gulf airlines to lead air cargo growth

Dubai: The air cargo industry, which saw a two per cent decline last year, is set for an upturn this year with the Middle Eastern airlines steering the growth, according to global aviation body, the International Air Transport Association, or IATA.

The recent global air freight demand statistics released by the aviation watchdog revealed that the Middle Eastern airlines continued to be the fastest-growing, reporting a demand increase of 16.3 per cent in January 2013 over the corresponding period a year earlier. IATA stated that the region’s airlines continue to benefit from route and capacity expansion into rapidly growing economies in West Africa and Asia.

Speaking at the World Cargo Symposium in Doha on Tuesday, Tony Tyler, IATA’s Director General and CEO, said that there are signs indicating that air cargo industry is on a growth path. “The last two years have been particularly difficult. Last year saw a two per cent decline in both air cargo demand and yields. There are early signs that an upturn is on the way,” he said.

Meanwhile, Qatar Airways reportedly plans to expand cargo capacity by 40 per cent as seven new freighter planes are due to join its fleet this year. The carrier’s chief executive, Akbar Al Baker, reportedly said at the cargo meet that Qatar Airways aims to being among the top five air cargo operators in the world within the next five years.

Asked how crucial a role Gulf airlines will play in the sector’s growth, analyst Andrew Charlton of Aviation Advocacy, told Gulf News: “Cargo is a leading edge indicator of growth. As ever it is being lead from the East. Again, the Gulf carriers are well positioned in their role of entrepot service providers. They have the infrastructure (terminals etc) so any improvement is likely to help rapidly. In that context they are likely to lead a push for increased efficiency and reduced processing.”

Air cargo accounts on average for about 12 per cent of the aviation industry revenues, and even more in some airlines, according to IATA. “That’s not far off the 14 per cent that is generated by business class sales. Improving the competitiveness of air cargo has the potential to impact positively our very thin margins,” said Tyler.

The global cargo meet in Doha saw IATA calling on airlines and their partners in the air cargo supply chain to work together to make air cargo more competitive and address industry challenges.