FedEx

Airlines and airports feeling impact of global economic weakness with continued freight pressures

Airlines and airports are feeling the impact of the current global economic weakness and declining consumer spending in Europe, which is having a noticeable impact on air cargo volumes. Cargo traffic, which generated USD66 billion in revenue in 2010, has declined every month since May-2011, according to IATA upon the release of its Oct-2011 traffic results, with a 4.7% year-on-year reduction in cargo demand in Oct-2011 amid reduced manufacturing confidence and businesses switching to slower modes of transport.

“Cargo is the story of the month. Since mid-year the market has shrunk by almost 5% and this is far greater than the 1% fall in world trade. Air freight is among the first sectors to suffer when businesses confidence declines,” IATA director general and CEO Tony Tyler said. Meanwhile, Boeing CEO Jim McNerney separately stated the company has seen a softening of freight demand in recent months, describing the freight market as a “watch item”.

FedEx cargo props up Memphis airport, but Delta cuts lower passenger traffic

In our examination of US hubs, Memphis stood out as its geography makes it vulnerable to being downsized. The latest announcements from Delta make that outcome more plausible.

ATA reports 17th month of revenue growth; yields improving on recovering economy

US passenger revenue rose 14.4% year-on-year in May-2011, marking the 17th consecutive month of revenue growth, with yields also improving on a recovering economy, according to the Air Transport Association of America.

Delta now world’s largest carrier; Ryanair stays top international airline

Delta Air Lines became the world's largest carrier by traffic in 2010, according to IATA, with Southwest Airlines remaining the largest domestic carrier and Ryanair still the largest international carrier by passengers. Delta’s consolidation with Northwest Airlines boosted Delta past Southwest and American Airlines based on combined international and domestic passenger numbers.

Mixed outlook for global air freight in 2011. Still awaiting confirmation of growth trend

The spectacular rebound in global air freight demand of 2009/10 has recently slowed to a canter, raising some concerns that 2011 could be marred by excess capacity and yield pressures as demand softens. The recovery has been broad-based, though Asia - especially China - has been the powerhouse performer.