Smoother skies: Revenue has grown steadily over the past five years following a sharp drop

The performance of the Freight Air Transport industry is determined, to a large extent, by the level of downstream demand for time-sensitive haulage of valuable goods. According to the Freight Transport Association (FTA), air freight accounts for approximately 40% of the total value of Britain’s trade with countries outside the eurozone but only 0.5% of the volume of freight moved. The total freight passing through British airports has fallen consistently over the past decade, falling to 33.5% in 2016. This has weighed on industry performance.Revenue is expected to decline at a compound annual rate of 1.4% over the five years through 2018-19, to £792.1 million...read more.

Industry Statistics & Market Size
Revenue
£792.1m
Annual Growth 14-19
-1.4%
Forecast Growth 19-24
Profit
Employment
2,903
Businesses
207

Industry Threats & Opportunities

  • The rise of low-cost carriers has limited the cargo that may be carried on passenger flights
  • Cargo volumes have only increased slightly in recent years, as low-cost operators lack hold space for freight
  • The expansion of Heathrow will ensure that the London region remains of prime importance for the industry
  • Industry Report - Industry SWOT Analysis Chapter

    The industry is expected to be in the mature stage of its life cycle. The Freight Air Transport’s industry value added (IVA), which is a measure of the industry’s contribution to the overall economy, is expected to decrease at a compound annual rate of 1.8% over the 10 years through 2023-24. Over the same period UK GDP is expected to increase at a compound annual rate of 1.7%. Although the industry is performing below the UK economy, the industry is expected to be mature as air freight volumes increase in the short term.Tough operating conditions have led to consolidation in recent years, and this trend expected to continue. Enterprise numbers have fallen as companies undertake mergers and acquisitions in attempt to boost efficiencies and survive volatile conditions. Thi...purchase to read more.

    Additional Insights for the Freight Air Transport Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Freight Air Transport Industry are

  • Optimum capacity utilisation
  • Ability to expand and curtail operations rapidly in line with market demand
  • Access to the latest available and most efficient technology and techniques
  • IBISWorld analysts also discuss how external factors such as Total value of world trade and World price of crude oil in the Freight Air Transport industry impact industry performance..

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    What's in this report

    What is the Freight Air Transport Industry?

    The industry includes businesses that transport commercial and private cargo by air, on either scheduled or non-scheduled routes, domestically and internationally. It also includes air transportation that is part of a national postal system but excludes door-to-door courier services.

    Industry Products
  • Other international scheduled cargo transport
  • Scheduled EU cargo transport
  • Other international non-scheduled cargo transport
  • Non-scheduled EU cargo transport
  • Domestic cargo transport
  • Domestic and international mail
  • Industry Activities
  • Transporting cargo by air
  • Transporting post by air
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total value of world trade
  • World price of crude oil
  • Demand from sea and coastal freight water transport
  • Real effective exchange rate

  • Current Performance
  • Turbulent journey
  • Cargo volumes
  • Profit trends
  • Concerns about the environment
  • Chart: Revenue Growth

  • Industry Outlook
  • Capacity improvements
  • World trade
  • Environmental issues
  • Uncertain skies
  • Table: Freight Air Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Freight Air Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit & Vegetable Wholesaling
  • Pharmaceutical Wholesaling
  • Freight Forwarding & Customs Agents
  • Postal & Courier Activities

  • Key Selling Industries
  • Air Transport Equipment Rental & Leasing
  • Aircraft, Engine & Parts Manufacturing

  • Products & Services
  • Other international scheduled cargo transport
  • Scheduled EU cargo transport
  • Domestic and international mail
  • Non-scheduled EU cargo transport
  • Domestic cargo transport
  • Other international non-scheduled cargo transport
  • Chart: Freight Air Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers and wholesalers
  • Business services
  • Manufacturers
  • Other
  • Postal and courier services
  • Chart: Major Market Segmentation for the Freight Air Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesEquipment leasingWagesSubcontractorsDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Freight Air Transport

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Freight Air Transport Industry

  • Industry Globalization
    British Airways plc, DHL Air Limited, Virgin Atlantic Airways Ltd, Uniserve (Air Freight) Limited,
  • Table: British Airways plc - financial performance
  • Table: DHL Air Limited - financial performance
  • Table: Virgin Atlantic Airways Ltd - financial performance
  • Table: Uniserve (Air Freight) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Freight Air Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Freight Air Transport Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Freight
  • Cargo goods or produce transported for commercial gain by ship, aircraft, train, van or truck.
  • Tonne Kilometre
  • A measure of cargo traffic calculated by multiplying the weight in tonnes of the shipment being transported by the number of kilometres that it is transported.
  • Wet Lease
  • A leasing arrangement whereby one airline (lessor) provides an aircraft complete with crew, maintenance and insurance to another airline (lessee), which pays by hours operated.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Freight Air Transport market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Freight Air Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Freight Air Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Freight Air Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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