Freight revenues vary by region: an overview
Freight revenues in the aviation sector are under pressure in 2024. This primarily affected Europe and the Americas. However, the overall market shows a positive trend and growth in traffic volumes.
Regional overview
According to WorldACD, the growth in freight volumes was not sufficient to offset the decline in rates. The analysis showed the following results in North America:
- toll weight increased by 4% year-on-year;
- rates decreased by 15%;
- the decline in revenue was 12%.
The situation in Europe was as follows:
- billable weight rose by 8%;
- rates decreased by 22%;
- airline revenue declined by 16%.
In South America, carriers recorded a 6% increase in paid weight, but a 6% reduction in rates negated the effect of this growth.
In the global market, weight increases totalled 12% with a 2% reduction in rates. As a result, operator revenues grew by 10%.
The year was particularly successful for the MESA (Middle East and South Asia) region. Revenues grew by 62% there, 23% in the APAC region, and 9% in Africa.
The MESA results reflected a significant 19% increase in tonnage and a 36% jump in service costs. In APAC, toll weight grew by 17% and rates by 5%. In Africa, tonnage increased by 9%, but rates decreased by 1%.
Trends and forecasts
The air freight market situation has improved by the end of 2024. In the year to September, revenues in Central and South America increased by 7%. At the same time, North America was flat. In Europe, revenues fell by 2%.
WorldACD analysts noted an upward trend in total air travel sales in most regions. Demand remains strong and should stay at current levels in the future. At the same time, generalised cargo volumes outperformed ad hoc. The former increased by 13% and the latter by 10%. This trend indicates a rapid increase in the volume of specialised cargo.
According to experts, the changes are due to the rapid growth of cross-border e-commerce traffic.
To date, routes in the Middle East and Asia remain the most profitable for airlines. North America is no longer bringing in the revenues that it used to. Analysts do not expect the situation to change dramatically in the near future. Fares will remain at current levels for the time being.
