Cargo continues to boost airlines

 Cargo continues to boost airlines

Air cargo demand continued to be strong in July, data from International Air Transport Association (IATA) show.

Global demand, measured in cargo tonne-kilometers (CTKs), was up 8.6 percent compared to July 2019. While the pace of growth slowed slightly compared to June, which saw demand increase 9.2 percent (against pre-Covid-19 levels), capacity continues to recover but is still 10.3 percent down compared to July 2019, according to data from IATA.

Rates are also zooming - August rates increased 112 percent, Clive Data Services reported.

Kempegowda International Airport, Bengaluru (BLR Airport) handled 37,319 metric tonnes (MT) of cargo in August —the highest ever since the airport commenced operations in 2008.

The data supports inputs from Airport Authority of India (AAI) and Etihad Airlines, which also witnessed a boom period.

Overall cargo movements across Indian airports increased 35 percent to 259.19 thousand tonnes in July 2021  from 191.74 thousand tonnes in July 2020. Across January-July, cargo movements increased to 997.71 thousand tonnes from 497.91 thousand tonnes.

“The recovery in cargo volumes has been broad based with volumes rising in almost all categories compared to the lows experienced during 2020,” said Saurabh Kumar, CEO, GMR Hyderabad Air Cargo. “In particular, exports of perishables, especially agricultural produce such as fruits and vegetables and marine produce are seeing strong traction and recovery from last year’s levels. There is also a significant improvement in volumes of engineering goods and textiles, which is aiding the growth & recovery in cargo traffic. At GMR Hyderabad Air Cargo, in the last year, we have put in place the necessary infrastructure and facility upgrades to support the growth in demand from these commodities. Going forward, we see this trend sustaining through the year.”

“Overall demand during Q2 increased by eight per cent compared to Q1 on an essentially flat capacity profile, putting belly capacity at around 11 per cent below pre-pandemic levels,” said Leonard Rodrigues, Head of Revenue Management and Network Planning, Etihad Airways.