By Mohammad Shoeb
DOHA: The Middle Eastern airlines witnessed the fastest growth in the world in 2015 registering a double-digit growth of over 11 percent compared to the previous year. The strong growth of carriers was driven by favourable economic conditions in the local economies.
In December, the carriers in the region grew 4 percent and for 2015 in total they expanded by 11.3 percent compared to 2014.
In terms of freight tonne kilometers (FTKs) it was 42.8 percent for 2015, according to the latest data released by the International Air Transport Association (IATA), one of the largest aviation industry representative body.
At a time when carriers from all other regions across the globe faced difficult times or saw moderate growth, the Middle Eastern airlines, which include the three major GCC carriers (Qatar Airways, Emirates and Etihad Airways) enjoyed a strong year as network expansion into emerging markets was supported by economic growth in local economies.
Political instability and the fall in the oil price may impact on some economies in the region but
growth as a whole remains robust enough to support further expansion in 2016.
Data on global air freight markets showing cargo volumes expanded 2.2 percent in 2015 compared to 2014. However, this was a slower pace of growth than the 5 percent growth recorded in 2014. The weakness reflects sluggish trade growth in Europe and Asia-Pacific.
Tony Tyler, IATA’s Director General and CEO, said: “2015 was another very difficult year for air cargo. Growth has slowed and revenue is falling. In 2011, air cargo revenue peaked at $67bn. In 2016, we are not expecting revenue to exceed $51bn. Efficiency gains are critical as the sector adjusts to shortening global supply chains and evermore competitive market conditions.”
“We have to adjust to the ‘new normal’ of cargo growing in line with general rates of economic expansion. The industry is moving forward with an e-freight transformation that will modernise processes and improve the value proposition. The faster the industry can make that happen, the better”, he added.
After a strong start, air freight volumes began a decline that continued through most of 2015, until some improvements to world trade drove a modest pick-up late in the year. Cargo in Asia-Pacific, accounting for around 39 percent of freight traffic, expanded by a moderate 2.3 percent. The key markets of Europe and North America, which between them comprise around 43 percent of total cargo traffic, were basically flat in 2015. Latin America suffered a steep decline of 6 percent. Africa also saw modest growth of 1.2 percent. The freight load factor (FLF) was at times the lowest for some years, falling to an average 44.1 percent compared to 45.7 percent in 2014, driven down by weak demand and capacity expansion.
The industry’s key challenges are expected to be discussed in detail at the upcoming World Cargo Symposium (WCS), which is to be held in Berlin from March 15 to March 17.
The 10th edition of WCS, the world’s largest gathering of air cargo professionals, will bring together 1,000 delegates under the theme of ‘The Value of Air Cargo’ to debate solutions for strengthening air cargo and the vital service it performs for the world economy.
The Peninsula
