The latest figures from Air France KLM Martinair Cargo do not paint a pretty picture. Cargo revenues declined almost 34%, compared with Q2 22, in the second quarter of 2023.
The statement revealed that cargo traffic was badly affected:
“As global economic growth is slowing down, container prices for sea freight declined and therefore demand for air cargo softened.”
“The load factor was 7.3 points below 2022 (at 44.6%) and due to the increased belly capacity, the yield declined as well, resulting in a decrease in unit revenue per ATK of 42.1% against a constant currency.”
In more positive news, Air France KLM Group’s global Q2 revenues showed a healthy increase of 14.1%. This boost has been driven by an 8.2% uplift in passenger numbers.
“It’s a challenging period at the moment. The favourable supply-demand dynamic of 2022 is actually the opposite of what we are seeing right now. The passenger side of the airline industry is very strong and, given current market conditions, there is surplus belly cargo capacity, meaning yields are under pressure.”
GertJan Roelands, SVP Commercial at Air France KLM Martinair Cargo
Will the challenges ease in the year's final quarter, traditionally peak season? Roelands didn’t seem to be overly optimistic:
“There’s likely to be some sort of uptick in the last quarter of the year, but if you ask me ‘will there be a significant change in terms of market dynamics?’ – looking at all the indicators at the moment there is no reason to believe that that will happen.”