Executive Briefings

FAA Paints Rosy Air Cargo Picture for Next 20 Years

The U.S. Federal Aviation Administration posted a bright outlook in its annual market review and forecast, noting that it expects total air cargo traffic, measured in revenue tonne kilometers, to grow by 4.5 percent in 2016, followed by stable growth averaging 3.5 percent over the next 20 years.

FAA Paints Rosy Air Cargo Picture for Next 20 Years

Its projections are based on projected gross domestic product growth, which it assumes is closely linked to air cargo activity.

The agency added that it expects the continued growth of all-cargo carrier capacity and "ongoing security considerations" to increase the market share of international cargo RTKs, at the expense of belly freight flown by passenger carriers. The FAA's projections predict that the all-cargo market share to ultimately reach 78.1 percent by 2036, up from its current level of 71.8 percent.

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Its projections are based on projected gross domestic product growth, which it assumes is closely linked to air cargo activity.

The agency added that it expects the continued growth of all-cargo carrier capacity and "ongoing security considerations" to increase the market share of international cargo RTKs, at the expense of belly freight flown by passenger carriers. The FAA's projections predict that the all-cargo market share to ultimately reach 78.1 percent by 2036, up from its current level of 71.8 percent.

Read Full Article

FAA Paints Rosy Air Cargo Picture for Next 20 Years