The International Air Transport Association (IATA) in its report has forecasted a net profit of $29.3 billion in 2020 for the global airlines industry. The industry in 2019 stood at a net profit of $25.9 billion (revised downward from a $28 billion forecast in June).
According to the report, the cargo traffic turned negative last year for the first time since 2012. The freight carriage in 2019 slipped by 2.1 million tonnes (mt) from 63.3 mt in 2018 to 61.2mt.
The 3.3% annual decline in demand was the steepest drop since 2009 during the Global Financial Crisis
However, the report suggests that a moderate rebound of 2% will be seen in cargo traffic in the coming year, with tonnes forecast to reach 62.4 million (still less than 2018 result).
Further, the forecast suggests a slip in cargo revenue for the third consecutive year with revenues expected to total $101.2 billion, down by 1.1%
The modest recovery in world trade and air cargo will help Asia Pacific carriers enjoy a net profit of $6.0 billion in 2020 for a 2.2% net margin.
Assumed, trade war to be on hold and trade tariffs not reversed the rise in trade and cargo volume is expected to be moderate, read the report.