Industry Analysis & Industry Trends
The performance of the Freight Air Transport industry is determined, to a large extent, by the level of downstream demand for the time-sensitive haulage of valuable goods. Industry services are the fastest, but often the most expensive, way to transport 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. Weak economic conditions caused world trade volumes, particularly those of high-value goods, to fall over much of the past five years, which decreased demand for air freight services.
Revenue is expected to decline at a compound annual rate of 6% over the five years through 2016-17 to reach £716.9 million... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry entered the mature stage of its life cycle at the start of the 21st century, when air freight traffic growth started stabilising. Freight Air Transport’s industry value added (IVA), which is a measure of the industry’s contribution to the overall economy, is expected to increase over the 10 years through 2021-22. IVA is forecast to grow at a compound annual rate of 4.5% over the 10-year period, while GDP is expected to grow at an estimated compound annual rate of 2.3% over the same period. Value added comprises industry wages, capital investment and profit, which are all anticipated to exhibit slightly different trends over the 10-year period through 2021-22. Profit margins are expected to improve by 2021-22. Dep.. purchase to read more