Price Trends: Air


By ·

Transaction prices for flying freight on U.S.-owned airliners’ scheduled flights increased 1.2% in February. Meanwhile, prices for flying cargo on chartered flights plunged 10.1%, and even air courier tags deflated half a percentage point. The airline industry’s aggregate prices and underlying operating costs both peaked in July 2008 before falling to the May 2009 low. From that low to February 2010, prices for all services have increased 8.7% and prices for air cargo (on scheduled flights) have grown only 5.4%. Industry costs, however, jumped 10.4% due largely to a 63% surge in fuel costs. Demands from recession-battered buyers will likely constrain air cargo annual inflation rates to 2.3% in 2010 and 0.2% in 2011.

% Change vs. 1 month ago 6 mos. ago 1 yr. ago
Scheduled air freight 1.2 4.8 -1.2
Chartered air freight & passenger -10.1 0.9 -0.9
Domestic air courier -0.5 8.1 12.8
International air courier -0.4 5.4 8.6

Source: Elizabeth Baatz, Thinking Cap Solutions. E-mail: [email protected]


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!

Article Topics

Air Freight · All Topics
Latest Whitepaper
Just Released: Understanding Hazmat Transportation Management
The rules and regulations governing the transportation of hazardous materials (hazmat) are complex.
Download Today!
From the July 2017 Logistics Management Issue
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish demand and political doubt. The result: “cognitive dissonance” that finds a $1.4 trillion market scratching its head.
2017 Truckload Brokerage Roundtable: Technology continues to connect the dots
Cloud Transportation Management Systems (TMS): Weis Markets streamlines “both sides” of the DC door
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
28th Annual State of Logistics: Into the great unknown
E-commerce continues to fuel a boom that’s tempered by overcapacity, rate pressures, sluggish...
2017 Top 50 3PLs: Investment and Consolidation Maintain Traction
The trend set over the past few years for mergers and acquisitions has hardly subsided, and a fresh...

The Evolution of the Digital Supply Chain
Everyone is talking about terms like digitization, Industry 4.0 and digital supply chain management,...
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...