Cargo led air traffic recovery in 2021

Air cargo proved a lifeline again for airlines in 2021, as global international passenger traffic remained mired at a fraction of its 2019 levels, data from the trade group IATA reveal. Cargo traffic, measured in cargo ton kilometers or CTKs, was up 6.9% for the full year compared to 2019, data released on Tuesday showed. On the other hand, passenger traffic only recovered to 42% of levels seen two-years ago. “Cargo continued to be a very important source of revenue and cash for the airline industry,” said IATA Director General Willie Walsh Tuesday. The strength of cargo demand in 2021 was already abundantly clear. It was so great that Airbus, long second fiddle to Boeing in the air freighter market, launched a dedicated freighter version of its A350 with an entry-into-service target of 2025. Lessor Air Lease Corp. launched the aircraft in November with Air France, CMA Group and Singapore Airlines both ordering the jet in subsequent months. And at Korean Air strong cargo demand drove continued profits — a rarity for the industry since the pandemic began — through at least the third quarter. On the passenger side, domestic markets again outperformed international markets during the year. Domestic passenger traffic recovered to nearly 72% of 2019 levels, while international only recovered to just under 25%. Russia had the most robust domestic market with traffic nearly a quarter higher in 2021 than two years ago, while traffic in the Brazilian, Chinese, and US markets was in the 70% recovered range.<br/>