A downer for air cargo: What accounts for stagnation of industry in FY23

The global economic downturn, issues with China and a shift towards sea and surface transport have impacted both the domestic and international business in FY23

After taking off again following a pandemic dislocation in FY22, domestic and international cargo carried by airlines in FY23 expanded just 0.6 per cent year-on-year (y-o-y) to 3.16 million tonnes.  Several factors contributed to this slow growth, including the global economic downturn, the suspension of cargo-in-cabin flights by carriers, decreased demand for medical supplies after the pandemic, inflationary pressures in major markets like the USA and Europe, a shift towards sea and surface transportation for cargo, and the impact of lockdowns in China. 

Additionally, the rising passenger load factor resulted in reduced belly space for freight on passenger aircraft. 

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