IATA’s Walsh says airlines are still focusing on air cargo

According to IATA Director General Willie Walsh, airlines are still focusing on air cargo after the Covid-19 pandemic. While airline management continues to concentrate on passenger operations as networks are being rolled out, the increased appreciation for cargo, generated over the last few years, will continue.

Airline management teams have come to recognize the value of cargo, the way the cargo industry operates, and what it meant to the industry and airlines, especially in terms of generating cash during the difficult period of 2020 and 2021. Walsh pointed out that airlines have recently invested in freighters, realizing the importance of all-cargo aircraft for competing in contracts.

Diversification of revenue streams through offering protection against market disruption is another reason to focus on cargo, which has a significant role to play in this approach. Walsh added that sustainability was the top priority on IATA’s future agenda, with digital transformation, safety, and security also important.

While sustainability is the biggest threat facing the industry, Walsh stated that cargo customers showed a greater emphasis on sustainability than their passenger counterparts. He felt that some of the recruitment issues experienced by the aviation industry were temporary, and that people would regain confidence that the sector was past the recent period of uncertainty.

However, Walsh stated that airlines do face a challenge regarding employment levels, as people have more choices than before, and competing for talent requires making the industry as attractive as possible. The decline in pricing this year has been partly due to cargo being able to share operating costs with passenger operations, something that was not possible during the pandemic.