Global air freight markets improved marginally in June, but the sector remains under severe pressure as airlines continue to fight for survival following the outbreak of the Covid-19 pandemic.“Cargo is far healthier than the passenger markets but doing business remains exceptionally challenging,” said Alexandre de Juniac, Director General and CEO of the International Air Transport Association (Iata).
“While economic activity is restarting after major lockdown disruptions, there has not been a major boost in demand. The rush to get personal protective equipment (PPE) to market has subsided as supply chains have regularised, enabling shippers to use cheaper sea and rail options. And the capacity crunch continues because passenger operations are recovering very slowly.”Demand for African airlines serving primary airports contracted by 13.8% in June, a 7.3% decrease in performance compared to May’s data.
According to Muhammad Ali Albakri, Iata regional vice president for Africa and the Middle East, African airlines are forecast to lose $2 billion in 2020. “Without urgent financial relief, the industry is at risk of collapse, putting about 3.3 million jobs and $33 billion in African GDP in jeopardy. In July Africa f lights were 77% lower relative to early January.”He said profit margins had been devastated in all regions. Describing the industry at present as being on “life support”, Albakri said there was very limited support for emerging market airlines, while government cash was very unevenly spread by country.
