Air Cargo Volume Likely To Decline By 17-20% In FY21: ICRA

Air cargo volumes are anticipated to say no by 17-20 per cent in FY21 with significant restoration in cargo volumes anticipated solely in FY22, ICRA Ratings stated on Friday. ALSO READ | Maharashtra Govt Considering To Suspend Delhi-Mumbai Flights, Trains As Covid-19 Cases In National Capital

Anupama Arora, Vice President and Sector Head, ICRA Ratings, stated: “Despite faster ramp-up, the total cargo volumes declined by 45 per cent YoY in H1 FY2021, with slow recovery in passenger aircraft traffic leading to loss of the earlier available cargo belly space constraining cargo growth.”

“In October 2020, the cargo volumes are likely to show significant improvement sequentially owing to the expected higher domestic air traffic movement due to the festival season.”

As per the report, the cargo volumes in September 2020 reached to 89 per cent of pre-Covid ranges when in comparison with passenger visitors at 29 per cent.

Besides, the rankings company cited that on the provision facet, airways adopted cargo on seats and devoted freighters to fulfill demand whereas there was inherent concern to journey throughout Covid-19 pandemic amongst enterprise and leisure travellers – the key contributors to passenger visitors traditionally, which stored journey demand subdued.

“The domestic cargo volumes witnessed significant improvement to 94,598 tonnes in September 2020 from 7,280 tonnes in April 2020. The ramp up in domestic cargo transportation in aircraft bellies of commercial passenger flights aided volume growth. With the restrictions on the passenger capacity, domestic airlines followed ‘cargo-on-seats’ model thereby utilising some aircrafts of their grounded fleet for cargo operations.”

Besides, the report identified that airports in metro cities have contributed to round 90 per cent of the general cargo visitors over the previous few years.

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“While the recovery has been faster in metros with Delhi, Bengaluru, Chennai and Hyderabad reaching closer to pre-Covid levels in September 2020, that of Mumbai and Kolkata remain constrained at 73 per cent and 52 per cent of September 2019 levels,” Arora stated.

“We note that the recovery in the non-metros in September 2020 has reached to around 73 per cent of September 2019 cargo volumes.”

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