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Optimistic Outlook for 2013

Airline cargo businesses experienced better operating conditions over recent months, leading to an increase in air freight volumes, stabilization in yields and a more optimistic outlook for 2013. Although world trade growth remains slow and jet fuel prices are high, the demand environment and drivers are showing positive signs.


There is no indication of an inventory overhang and current levels of business confidence point to modest growth in the months ahead, driven by stronger performance of the US and Chinese economies and stability in the Eurozone. European consumer confidence improved in the new year after continued decline in H2 2012 and US consumers remain optimistic about the economic outlook, supporting the rise in air-freighted consumer goods over recent months. Furthermore, capital investment intentions of UK companies have improved in 2013.

Although aircraft utilization rates face downward pressure from new aircraft deliveries in 2013, cargo heads surveyed in January 2013 are optimistic, saying they expect yields to remain stable and volumes to increase over the next 12 months. 


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