Air Freight - Market Report

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Key Note estimates that the UK air freight market was worth £726.1m in 2004, most of which is attributed to international services.
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April 14, 2007 (Press Release) --
Air Freight - Market Report

Key Note estimates that the UK air freight market was worth £726.1m in 2004, most of which is attributed to international services. Domestic services have only a limited role, since that market is dominated by road transport operators.

International air freight services are provided by companies based both in the UK and overseas, with the latter having the largest share. Among UK players, non-scheduled operations are showing the fastest growth, although scheduled airlines such as British Airways, which offer air freight as a by-product of their passenger operations, still provide most air freight capacity.

Positive influences on the market include: growth in world trade and the opening up of new markets; a reduction in air freight rates as a result of competition between airlines; the requirement to move component parts around the world faster and more reliably; and changes in manufacturing processes that require the widespread adoption of just-in-time (JIT) working practices. Furthermore, the service provided by air freight operators has become such an integral part of the efficient operation of today's economy that it is less vulnerable than some other markets to the effects of recession.

Several subsectors are considered to be relatively immune to economic downturn, such as the transport of luxury items purchased by consumers in upper income groups, emergency medical supplies and emergency spares. Air freight operators also benefit from growth in passenger travel, since it increases the amount of cargo capacity available as a by-product in the belly holds of passenger aircraft. Consequently, a worldwide network of cargo services has been created that offers high service frequencies.

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