Global cargo airlines saw a drop in traffic from the economic recession.
The global economic recession of 2008 and 2009 caused substantial financial losses for the air cargo industry, as the weaker economy caused a reduction in demand for capital goods and less global trade activity. Air freight operators were forced to reduce the number of flights and retire older aircraft.
Background
While air cargo carries just two to three percent of the world's freight, it represents about 35 percent of the value of international freight. The world's largest cargo airlines include Federal Express, UPS Airlines and Korean Air.
Recession
As the global economic recession took hold in December 2008, the International Air Transport Association (IATA) announced that there had been a 13.5 percent decrease in international air cargo in November compared to the same month a year before. The IATA attributed the drop to the reduction in global trade. By March 2010, about 200 wide-body freight aircraft--representing one quarter of the world's fleet--had been taken out of service.
Recovery
As the economy began to rebound by 2010, so did air cargo. The IATA said that freight volumes in May 2010 were six percent higher than they were prior to the recession. U.S. air cargo carriers increased their traffic by 35 percent compared to the previous May.
Tags: economic recession, global economic, global economic recession, global trade