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Freight Air Transport in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Freight Air Transport Market Research Report | SIC H51.210 | Feb 2017

Up in the air: Intense competition is anticipated but world trade value is expected to increase

IBISWorld’s Freight Air Transport market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
British Airways British Airways market share
Deutsche Post AG Deutsche Post AG market share
Uniserve (Air Freight) Limited Uniserve (Air Freight) Limited market share
Virgin Atlantic Airways Virgin Atlantic Airways market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
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Industry Threats & Opportunities
  • Declining world trade volumes of high-value goods fell over much of the past five years
  • Industry enterprise and establishments numbers have falling owing to increased competition
  • The depreciation of the pound will make UK goods more attractive overseas, increasing industry demand
  • ... purchase to read more

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 Investment Chapter

The industry has a moderate level of capital intensity. Capital expenditure on freighters depends on the size of the operation, and the purchase of aircraft can be a significant cost. In recent years, investment in fuel-efficient aircraft has increasingly occurred, meaning significant spending levels have become common in the industry. For most operators, depreciation is only applied to plant and machinery, computer equipment and improvements made to leased aircraft, so the average rate of depreciation is relatively low.

Labour requirements are less significant compared with passenger air transport industries, because no on-flight service is provided on freight flights, meaning fewer staff members are needed. Approximately 14.3% 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... purchase to read more


    Industry ProductsRelated Reports

    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 transportScheduled EU cargo transportOther international non-scheduled cargo transportNon-scheduled EU cargo transportDomestic cargo transportDomestic and international mail
    Industry Activities
    Transporting cargo by airTransporting post by air

    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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 take-off
  • Pressure from competition
  • Cargo volumes
  • Concerns about the environment
  • Chart: Revenue Growth
  • Industry Outlook
  • World trade
  • Capacity improvements
  • Environmental issues
  • Pricing changes
  • Regulation
  • Table: Freight Air Transport Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Freight Air Transport Industry Lifecycle vs The Economy
  • Products & Markets
    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
  • Non-scheduled EU cargo transport
  • Domestic and international mail
  • Other international non-scheduled cargo transport
  • Domestic cargo transport
  • Scheduled EU 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
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Equipment leasing
  • Wages
  • Subcontractors
  • Depreciation
  • Other
  • 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
    Major Companies
    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
  • Operating Conditions
    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
    Key Statistics
  • Table: Industry Data for the Freight Air Transport Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
  • 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.

  • Why Buy this Report?
    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 of 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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