Iata predicts next cargo record year
At this week's media briefing in Geneva, the International Air Transport Association (Iata) forecasted global industry net profit to rise to USD 38.4 billion in 2018, an improvement from the expected USD 34.5 billion net profit in 2017 (revised from a USD 31.4 billion forecast in June).
Cargo volumes are expected to grow by 4.5% in 2018. The boost to cargo volumes in 2017 (+9.3%) was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand. This led cargo volumes to grow at twice the pace of the expansion in world trade (4.3%).
Cargo yields are expected to improve by 4% in 2018 (2017: +5%). While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in 2018. Cargo revenues will continue to do well in 2018, reaching USD 59.2 billion (up by 8.6% from 2017 revenues of USD 54.5 billion). (ah)