Winging it: Despite volatility, industry firms have benefited from increased exports

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 1.6% over the five years through 2019-20, to £846.1 million...read more.

Industry Statistics & Market Size
Revenue
£846.1m
Annual Growth 15-20
-1.6%
Forecast Growth 20-25
Profit
Employment
2,885
Businesses
209

Industry Threats & Opportunities

  • The total freight passing through British airports has fallen, weighing on performance
  • The rise of low-cost carriers in Europe has served to constrain air freight growth
  • Airport capacity is stretched, making it difficult to secure slots to meet buoyant demand
  • Industry Report - Industry Key Buyers Chapter

    The Freight Air Transport industry is highly concentrated, with the top four players in the industry estimated to hold 89.4% of the market in 2019-20. The largest player, British Airways plc, is expected to account for 36.9% of industry revenue in the current year. Operating a cargo airline is competitive because the costs associated with air transport are high and the nature of the service means a good reputation and customer loyalty are essential. As a result, larger companies hold significant market shares because they already have routes established for passenger routes and an existing customer base.Despite the high level of market share concentration, the majority of industry enterprises have adopted technology aimed at containing labour costs. As a result, 92.8% o...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
  • Postal and courier services
  • Other
  • 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 leasingWagesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Freight Air Transport

  • Basis of Competition
  • Internal competition
  • External 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • 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 offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    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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