Airlines see sustained cargo boost supporting recovery

Robust air cargo demand should remain a bright spot for the airline industry as international travel gradually recovers from the coronavirus crisis, industry body IATA said Tuesday. IATA DG Willie Walsh said strong freight revenues had been “the difference between life and death for some airlines” as COVID-19 lockdowns brought passenger traffic to a standstill. “Cargo will continue for the next few years to play a bigger role than it did before the crisis,” he told an online briefing. The mass grounding of passenger planes that normally carry half the world’s air freight in their holds has driven cargo prices and revenue higher. That led some airlines to post record freight earnings last year, even as overall losses peaked. Despite returning passenger capacity, a broader economic recovery will sustain cargo income that surged to 35% of airline revenue last year from 10-15% pre-crisis, IATA predicts.<br/>