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Cargo Breaking News 3 January 2023

Air cargo revenues helped in reducing losses in 2022: IATA

The International Air Transport Association (IATA) expects a return to profitability for the global airline/ air cargo industry in 2023 as airlines continue to cut losses stemming from the effects of the COVID-19 pandemic to their business in 2022. Air cargo revenues played a key role in cutting losses with revenues expected to reach $201.4 billion. That is an improvement compared with the June forecast, largely unchanged from 2021, and more than double the $100.8 billion earned in 2019.

In 2023, airlines are expected to post a small net profit of $4.7 billion—a 0.6% net profit margin. It is the first profit since 2019 when industry net profits were $26.4 billion (3.1% net profit margin). In 2022, airline net losses are expected to be $6.9 billion (an improvement on the $9.7 billion loss for 2022 in IATA’s June outlook). This is significantly better than losses of $42.0 billion and $137.7 billion that were realized in 2021 and 2020 respectively.

“Resilience has been the hallmark for airlines in the COVID-19 crisis. As we look to 2023, the financial recovery will take shape with a first industry profit since 2019. That is a great achievement considering the scale of the financial and economic damage caused by government imposed pandemic restrictions. But a $4.7 billion profit on industry revenues of $779 billion also illustrates that there is much more ground to cover to put the global industry on a solid financial footing.

Many airlines are sufficiently profitable to attract the capital needed to drive the industry forward as it decarbonizes. But many others are struggling for a variety of reasons. These include onerous regulation, high costs, inconsistent government policies, inefficient infrastructure and a value chain where the rewards of connecting the world are not equitably distributed,” said Willie Walsh, IATA’s Director General.

Etihad Cargo expands capacity offering to the United States

Etihad Cargo, the cargo and logistics arm of Etihad Aviation Group, will further reinforce its commitment to the US market with the introduction of an additional three weekly flights to John F. Kennedy International Airport (JFK) from 24 April 2023. The additional flights will bring Etihad Cargo’s total cargo capacity to over 600 tonnes out of the US per week.

The flights will be operated with both Airbus A350 and Boeing 787-9 Dreamliner aircraft, two of the most efficient in the world, with significantly less fuel burn and CO2 emissions than previous-generation twin-aisle aircraft.

“The introduction of double-daily direct flights from our Abu Dhabi hub to New York comes in response to increased demand from customers, and Etihad Cargo will continue to explore opportunities to expand its global network and introduce the required capacity,” said Martin Drew, Senior Vice President Global Sales & Cargo, Etihad Aviation Group.

“The addition of more flights per day to New York combined with Etihad Cargo’s services to other key US destinations and comprehensive road feeder service network will enable Etihad Cargo to fully support its customers in the transportation of their cargo to online and offline locations throughout this key market.”

Etihad Cargo currently operates 11 flights per week to John F. Kennedy International Airport, which will increase to 14 weekly flights on 24 April 2023, and daily flights to Chicago O’Hare International Airport and Dulles International Airport, Washington. Etihad Cargo also operates two dedicated Boeing 777 freighter flights per week to Chicago via Amsterdam, supported by an offline network.

Qatar Airways Cargo transports day old chicks Qatar Airways Cargo welcomed special guests on board recently. As per a recent social media post by Qatar Airways Cargo, Aviagen's debut with an international shipment of day-old chicks from Copenhagen in Denmark transited through its specialized climate control centre in Doha.

This first shipment signifies the start of a carefully orchestrated long-term business partnership between Qatar Airways Cargo and Aviagen, which launches Copenhagen as a new trade route to transport Aviagen's chicks hatched at Baekke to locations all around the world. Also Read - Air cargo demand drops further as holiday season starts: WorldACD Miguel Rodríguez MBA, Senior Manager Cargo Climate Control Products at Qatar Airways Cargo said, "Aviagen is an important customer, and we are committed to delivering on the specific requirements of transporting day-old chicks.

With our extensive network and fleet of belly-hold flights and freighters connecting out of the state-of-the-art climate control centre at our Doha hub, we are able to provide seamless global transport for these precious animals, contributing to the sustainability goals to end hunger and provide communities with safe food supplies."

Qatar Airways Cargo's IATA CEIV Live-certified Next Generation Live Animals service includes a dedicated day-old chick process that has been fine-tuned to ensure minimum transit exposure, attentive handling, proper hydration, and optimum temperatures. Aviagen is a leading poultry breeding company based in Huntsville, Alabama, US., with operations across the UK, Europe, Turkey, Latin America, India, Australia, New Zealand, and the US, and joint ventures in Asia. Also Read - Demand to improve in Q22023: Cathay Pacific As per a press release on Aviagen's website, recently on November 24, Aviagen delivered close to 36,000 day-old chicks to its customer Provita Breeder in Bangladesh.

The chicks were hatched at the Aviagen hatchery in Baekke, Denmark, and shipped from Copenhagen Airport (CPH) with Qatar Airways Cargo via Doha. This represents a brand new trade route for Aviagen in its ongoing stride to feed the world with a healthy and accessible source of protein, cited the release.

"A colder climate and concerns for bird health and welfare have in the past precluded shipment from CPH or Copenhagen Airport. However, amid growing Avian Influenza concerns, Aviagen has taken added measures to ensure the chicks are kept in temperature-controlled conditions from the hatchery to the aircraft.

These measures will keep day-old chicks safe and warm, even in the winter months. CPH has now become a new trade route to transport chicks hatched at Baekke to locations around the world. This represents the first international shipment for Aviagen from CPH. The project has required immense behind-the-scenes preparation."

Global air cargo tonnages saw strong decline in Dec: WorldACD

According to the latest figures from WorldACD Market Data, global air cargo tnnages have dropped strongly, during this holiday season. However, despite the weakening trend in air cargo tonnages, this year’s decline at the beginning of the holiday season is smaller than last year, indicate, WorldACD data. “Figures for week 51 (19 to 25 December) show an overall drop of -11 percent in worldwide flown tonnages compared with the previous week. The decrease in overall chargeable weight is normal for this time of the year as the holiday period begins, with this year’s drop smaller than last year (-14percent) when comparing week 51 to week 50. The average rates declined in week 51 by -2 percent compared to the previous week, which is slightly steeper than during the same period last year and a continuation of the sliding rate levels that we have witnessed since the beginning of the month.

Comparing weeks 50 and 51 with the preceding two weeks (2Wo2W), tonnages decreased -7 percent below their combined total in weeks 48 and 49, while average worldwide rates declined -3 percent, combined with a -3 percent decrease in capacity – based on the more than 400,000 weekly transactions covered by WorldACD’s data. In this two-week period, tonnages were down between all regions, except from Middle East & South Asia to Asia Pacific (+5 percent), and intra-Asia Pacific (+3 percent). Most significant decreases were recorded from Asia Pacific to Europe (-18 percent), from North America to Europe (-16 percent) and from Europe to Africa (-16 percent),” the data further indicates.


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