Subscribe to our free, weekly email newsletter!


Air cargo/global logistics: IATA issues promising forecast

image
By Patrick Burnson, Executive Editor
June 07, 2010

Global air cargo traffic is back to pre-recession levels, declared Giovanni Bisignani,?director general and CEO?International Air Transport Association (IATA). Speaking at its 66th Annual General Meeting and World Air Transport Summit?in Berlin, Germany, he provided a “snapshot” suggesting cautious optimism.

“Our resilience has been tested by disease, war, terrorism, spiking oil prices and even a volcano,” he said. “The worst economic recession in 80 years saw revenues drop by $81 billion and losses of almost $10 billion in 2009.”

“But today we are upgrading our global industry forecast to a full-year profit of $2.5 billion,” said Bisignani. “This is the first global profit since 2007.  It is a reason to celebrate. But with a margin of 0.5 percent, it will be a modest party. And we face real downside risks.”

Chief among them, he said, is capacity?excess. Bisignani warned that the upturn “will bring temptation.” 1,340 aircraft will be delivered this year and only 500 are for replacement. The discipline of chasing profits, not market share, is the only way to protect the bottom line, he emphasized.

The next concern is organized labors, which he characterized as being “out of touch with reality.” Bisignani said airlines cannot pay salary increases at a time when they are trying to recover collectively from $47 billion in losses.

Taxation is another worry for the air cargo sector. Governments went $2.7 trillion in debt to rescue the bankers, stimulate economies and support currencies, he said.

“And the risk of oil price volatility may not be over, either. Hedging is critical for our business, but speculators are making huge profits. Governments must protect the economy from irresponsible profiteering.”

Click here for a full transcript of the State of the Air Transport Industry speech

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

UPS Access Point locations serve as a replacement delivery address when consumers are not at home to receive a package or when consumers want a delivery to go somewhere other than their residence.

Non asset-based third-party logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has acquired El Paso, Texas-based Stagecoach Cartage and Distribution for $35 million along with an earn-out at $5 million.

The three California port directors who faced the wrath of shippers at the annual meeting of the Agriculture Transportation Coalition (AgTC) in San Francisco late last June, surprised many with their candor and heartfelt mea culpas.

Matson, Inc., a leading U.S. carrier in the Pacific, is moving quickly to fund improvements in its new Alaska operations following its May 29 acquisition of Horizon Lines' Alaska services.

Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said despite the recent trends coming out of China, it is important to remember is that on a big picture level, its impact on the global economy is big and growing.

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA