Global Cargo Airlines Industry Market Research Report from IBISWorld has Been Updated
Los Angeles, CA (PRWEB) July 18, 2013 -- The Global Cargo Airlines industry primarily transports commercial cargo as well as time-sensitive freight and mail. Because the industry moves goods throughout the world, it is dependent on the level of international trade between countries. The industry is essential to international trade, granting it a degree of demand stability. As a result, industry revenue is expected to grow at an annualized rate of 2.1% in the five years through 2013 to reach $75.4 billion.
“During the global downturn of 2008 and 2009, demand for goods and services weakened worldwide,” says IBISWorld industry analyst Lauren Setar. “This low demand led to a fall in production activity from manufacturing giants, like China, and a drop in the quantity of goods traded.” Overall, demand for air freight declined considerably because of poor economic conditions in 2009; as a result, the industry's revenue plummeted 24.6% that year. However, companies around the world replenished their inventories in 2010, causing a dramatic rise in cargo demand, enabling revenue and profit margins to rebound. Due to greater freight volumes and higher prices, the industry has returned to a more sustainable growth rate, which includes an estimated increase of 2.9% in 2013.
The Global Cargo Airlines industry has low profit margins, which will continue to remain weak due to high fuel prices and slow economic activity in European countries; nonetheless, the weak margin is still an improvement on 2008 and 2009. “Market share concentration has fallen during the five years to 2013,” says Setar. “During the economic downturn, large players were very sensitive to the poor economic conditions in developed markets.” Major companies include Air France-KLM S.A., Deutsche Lufthansa AG, and Cathay Pacific Airways Limited. The smaller but rapidly growing players, particularly ones based in emerging economies, gained market share as air traffic grew at steadier rates in these economies. Extremely high fuel prices pushed many airlines into operating losses in 2008. Then, in 2009, a sharp contraction in demand pushed more companies into the red. In 2010 operators started to experience more favorable demand conditions as manufacturing levels strengthened; however, rising fuel prices have continued to pressure profit margins.
Faster growth is expected, mainly due to expansion in newly industrialized economies. Manufacturing output in China and other Asian countries is anticipated to increase during the period, which will contribute to growth in freight volume transported in the next five years. Demand for merchandise is expected to increase considerably in newly industrialized economies, and this demand will continue to grow across developed countries, boosting demand for cargo airlines. It is expected that freight service providers will also increase the average fare for their services, which will add value to sales.
For more information, visit IBISWorld’s Global Cargo Airlines industry report page.
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IBISWorld industry Report Key Topics
The industry includes businesses that provide air transportation for commercial and private cargo, on either scheduled or nonscheduled routes. It includes air transportation that is part of a national postal system but excludes door-to-door courier services.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld Inc., http://www.ibisworld.com, 310-866-5042, [email protected]
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