Prathama Line

Shanghai airfreight remains under pressure from city lockdown

By Rebecca Jeffrey

Operations at Shanghai Pudong International Airport (PVG) remain constrained as it largely handles pre-lockdown air cargo and supply chain operations are still limited.

This is according to the latest advisory from UK-based logistics, freight forwarding & supply chain specialist Woodland Group.

Commenting on how Shanghai is coping with its extended Covid lockdown, Woodland said PVG is “open and operational” but added “freight being handled is mainly clearing of cargo that was delivered pre-lockdown”.

The airport continues to see the impact of the city-wide lockdown in Shanghai, with Woodland noting there is a “shortage of trucks available to deliver cargo to the airport”.

Efforts to keep the workforce active at the airport include some terminals provided sleeping facilities, however with a number of workers locked down at home there is still an operational impact, added Woodland.

Meanwhile Shanghai-headquartered electric vehicle company Nio said it was suspending production and delaying delivery of its cars after suppliers in Shanghai, Jiangsu and Jilin stopped production due to the pandemic.

Guangzhou has also enforced new Covid restrictions after cases rose in the city. This is expected to hit the automotive, petrochemical, and, electronics industries based in Guangzhou, further adding to supply chain delays and bottlenecks.

The airfreight industry is continuing to monitor capacity and rates, prompting UK-based Westbound Logistics Services to assesses whether the industry should prepare for high rates to be the new normal.

Westbound said that even if the wider world can meet the challenges presented by the pandemic, “it is impossible to see everything returning back to pre-covid levels in the next couple of years, if at all”.

It added: “To hang on to a hope of significant rate reductions in the short to medium term is almost certainly a flawed business strategy”.

The Asia market, to both Europe and North America, has been the most affected by airfreight rates in the past two years.

In addition to Covid, supply factors contributing to the high rate levels include port congestion, equipment turnaround and schedule disruption. “For example, Northern China is currently experiencing a higher degree of equipment shortages and therefore rates are significantly higher than the rest of China,” said Westbound.

It added: “Demand may also impact rates levels as we move forward in the months to come, these include a lack of low value product volumes, alternative sourcing and inflation.”

To add to this, North America is battling both port and warehouse congestion, while European trade is still seeing the fallout from Brexit.

Dimerco added on April 11 that road transport truck control is getting stricter which is making it “difficult to secure trucks to bring freight to Shanghai or alternative airports”.

It added: “For air import into Zhengzhou (CGO), freight with customs transfer to PVG will not be accepted from April 11 onward. All import shipments with a final destination at PVG (Shanghai) need to be custom cleared at CGO airport.”

The company said its Shanghai export operations are suspended and shipments in and out of the warehouse are suspended. On-hand cargo will go to PVG but will be exported via other airports, including Guangzhou, Shenzhen and Beijing. A back-up warehouse is operating for cargo that has reached Shanghai.

Dimerco’s import warehouse is locked down and trucks are not allowed t0 enter. A very limited number of trucks with a “green pass” are allowed to pick up cargo.  Cargo on-hand cannot be operated.

Shanghai Lockdowns : Ocean and Air Disruption

The city of Shanghai has entered the first of a two stage lockdown due to an

increase in Covid cases, which is expected to lead to more delays on both

ocean and air freight.

The city of Shanghai has entered the first of a two stage lockdown due to an increase in Covid cases, which is expected to lead to more delays on both ocean and air freight.

In what is widely considered to be China’s most drastic measures since the outbreak of the pandemic, the eastern side of the city is now in lockdown until Friday, with the western side following suit between 1st and 5th of April.

The port and the airports remain open, but strict rules for trucking have already led to a lack of available transport, which is impacting LCL, FCL and Air freight movements.

The lockdowns have led to factories and businesses being closed down, public transport being halted and office staff working from home.

It is possible that delays will be incurred, to and from the region, for the next couple of weeks.

Westbound are continuing to monitor the situation closely and suggest that customers contact us before arranging any urgent shipments.

On the flip side, lockdowns and restrictions have eased in the Shenzhen area during the past week or so. While congestion is still affecting logistics, the ports are starting to return towards normal.

At Westbound Logistics we pride ourselves in offering personalised and tailored logistics solutions. To find out more please call 01375 800800 or email info@westboundglobal.com.

Current U.S. Shipping Conditions:More U.S. Locations Experiencing Congestion

The outlook on U.S. logistics is grim to say the least. Despite efforts to help ease congestion and increase workflow, the volume that ports, rails, and warehouses are dealing with is unprecedented. The infamous congestion seen at Los Angeles and Long Beach has yet to be dampened, and now the list of nearly impossible ports has grown with the addition of Houston and Charleston. Along the East Coast trucking insufficiencies are mounting and rates are soaring. International importers are scrambling to use alternate ports to avoid the mayhem at the mega hubs, however this activity is rerouting truckers and creating equipment imbalances, prolonged timelines, and increased rates. Needless to say, there has yet to be improvement in recovering from the aftermath of the logistic nightmare since the onset of COVID in early 2020.

Updates in Southern California

LA/LGB are still facing extreme congestion and related issues. Vessels wait weeks for appointments to berth, and truckers are typically booked for 5-7 weeks in advance. It is not uncommon for trucking companies to turn down new requests even with ample advanced notice due to a lack of resources. As of Friday, LA/LGB port began assessing yet another new fee to help encourage clean trucking. The new $10/TEU fee is not intended to deter shippers from the port, but rather use the funds to help build a better, cleaner process. Though efforts are in place to build a brighter future, it adds yet another layer of expense to an already over-inflated and costly endeavor for the necessity of removing containers from the port.

Gulf State Delays

In early 2022, Gulf states boasted less-congested ports and the ability to alleviate the volume seen in SoCal’s ports. However, perhaps the efforts to reroute cargo have been too popular, as now Houston is a hotspot for congestion, lack of trucking, and extended timelines. Imports were 40% of business in Houston, but in Q1 it was closer to 70%. The shift in operations is causing equipment imbalances with not enough chassis to match container need; this means that cargo waits longer, trucking gets backed up, and the whole system starts to see a bullwhip effect of inefficiencies.

Charleston is no stranger to the same trend seen in Houston, as this East Coast port, like its peer in Norfolk, Savannah, and Baltimore are experiencing an increase in import demand and lack of infrastructure and processes to appropriately handle the volume. The American Trucking Association claims 70% of U.S. freight is moved by trucks. With a number this high, it is clear why rates have become extremely volatile and subject to the supply and demand curve more than other shipping modes. The recent rise in fuel cost also impacts the ever-growing trucking rates, as the world is still reeling in the Ukraine / Russian War, as well as other global events wreaking havoc on the global supply chain.

IATA: Air cargo up in February but uncertainty looms

By Rebecca Jeffrey

Global air cargo demand was up 2.9% in February compared to February 2021 although capacity is still constrained, according to the latest International Air Transport Association (IATA) data.

Cargo is tracking above pre-COVID-19 levels said the trade association. Demand, measured in cargo tonne-kilometers (CTKs) rose 2.5% for international operations year on year.

Adjusting the comparison for the impact of the Lunar New Year (which can cause volatility in reporting) by averaging January’s and February’s performance, demand increased 2.7% year-on-year, explained IATA. While cargo volumes continued to rise, the growth rate decelerated from the 8.7% year-on-year expansion in December.

Capacity was 12.5% above February 2021 (8.9% for international operations). However, compared to pre-COVID-19 levels, capacity remains constrained at 5.6% below February 2019 levels.

Several factors benefitted air cargo in February compared to January, noted IATA. Manufacturing activity ramped-up quickly after the early February Lunar New Year holiday, which benefited demand.

Capacity was positively influenced by the general and progressive relaxation of COVID-19 travel restrictions, reduced flight cancellations due to Omicron-related factors (outside of Asia), and fewer winter weather operational disruptions.

IATA added that the impact of Russia’s invasion of Ukraine had limited effect globally on February’s performance as it occurred very near the end of the month, but the negative impacts of war and related sanctions (particularly higher energy costs and reduced trade) will become more visible from March.

 “Demand for air cargo continued to expand despite growing challenges in the trading environment. That is not likely to be the case in March as the economic consequences of the war in Ukraine take hold. Sanction-related shifts in manufacturing and economic activity, rising oil prices and geopolitical uncertainty will take their toll on air cargo’s performance,” said Willie Walsh, IATA’s director general. 

IATA noted that the zero-Covid policy in mainland China and Hong Kong continues to create supply chain disruptions as a result of flight cancellations due to labour shortages, and because many manufacturers cannot operate normally.

Air cargo market in February 2022. Source: IATA

Available capacity in Asia Pacific remains heavily constrained – up 15.5% compared to February 2021, but down 14.6% compared to February 2019.

Meanwhile Asia-Pacific airlines saw their air cargo volumes increase 3% in February 2022 compared to the same month in 2021.

European carriers saw a 2.2% increase in cargo volumes in February 2022 compared to the same month in 2021.  This was slower than the previous month (6.4%), partially attributable to the war in Ukraine which started at the end of the month. Seasonally adjusted demand on the Asia-Europe route, one of the most affected by the conflict decreased by 2% month on month. Capacity was up 10% in February 2022 compared to February 2021, and down 11.1% compared to pre-crisis levels (2019).

North American carriers posted a 6.1% increase in cargo volumes in February 2022 compared to February 2021. Capacity was up 13.4% compared to February 2021.

Middle Eastern carriers experienced a 5.3% year-on-year decrease in cargo volumes in February. The weak performance was attributed to a deterioration in traffic on several key routes, but data indicates that the region is likely to benefit from traffic being redirected to avoid flying over Russia, stated IATA. Capacity was up 7.2% compared to February 2021.

Latin American carriers reported an increase of 21.2% in cargo volumes in February 2022 compared to the 2021 period, with some of the largest airlines in the region are benefitting from the end of bankruptcy procedures. Capacity in February was up 18.9% compared to the same month in 2021.

African airlines saw cargo volumes increase by 4.6% in February 2022 compared to February 2021. Capacity was 8.2% above February 2021 levels.

Passenger Recovery Accelerates in February

 06 April 2022      No: 19

Geneva – The International Air Transport Association (IATA) announced that air travel posted a strong rebound in February 2022 compared to January 2022, as Omicron-related impacts moderated outside of Asia. The war in Ukraine, which began on 24 February, did not have a major impact on traffic levels.

Note: We are returning to year-on-year traffic comparisons, instead of comparisons with the 2019 period, unless otherwise noted. Owing to the low traffic base in 2021, some markets will show very high year-on-year growth rates, even if the size of these markets is still significantly smaller than they were in 2019.

 •            Total traffic in February 2022 (measured in revenue passenger kilometers or RPKs) was up 115.9% compared to February 2021. That is an improvement from January 2022, which was up 83.1% compared to January 2021. Compared to February 2019, however, traffic was down 45.5%. 

•             February 2022 domestic traffic was up 60.7% compared to the year-ago period, building on a 42.6% increase in January 2022 compared to January 2021. There was wide variation in markets tracked by IATA. Domestic traffic in February was 21.8% below the volumes of February 2019.

 •            International RPKs rose 256.8% versus February 2021, improved from a 165.5% year-over-year increase in January 2022 versus the year-earlier period. All regions improved their performance compared to the prior month. February 2022 international RPKs were down 59.6% compared to the same month in 2019.

“The recovery in air travel is gathering steam as governments in many parts of the world lift travel restrictions. States that persist in attempting to lock-out the disease, rather than managing it, as we do with other diseases, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring,” said Willie Walsh, IATA’s Director General.

February 2022 (% year-on-year)                World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  115.9%  68.4%    15.4%    69.8%

Africa    1.9%      60.2%    33.1%    11.0%    64.8%

Asia Pacific          27.6%    42.9%    31.9%    4.8%      62.9%

Europe 24.9%    232.8%  136.1%  20.9%    72.1%

Latin America     6.5%      100.5%  75.1%    10.0%    79.5%

Middle East        6.5%      194.1%  80.9%    24.9%    64.8%

North America  32.7%    134.9%  69.1%    20.9%    74.5%

1% of industry RPKs in 2021   2year-on-year change in load factor   3Load Factor Level

 International Passenger Markets

•             European carriers saw their February traffic rise 380.6% versus February 2021, improved over the 224.3% increase in January 2022 versus the same month in 2021. Capacity rose 174.8%, and load factor climbed 30.3 percentage points to 70.9%.

 •            Asia-Pacific airlines had a 144.4% rise in February traffic compared to February 2021, up somewhat over the 125.8% gain registered in January 2022 versus January 2021. Capacity rose 60.8% and the load factor was up 16.1 percentage points to 47.0%, the lowest among regions.

 •            Middle Eastern airlines’ traffic rose 215.3% in February compared to February 2021, well up compared to the 145.0% increase in January 2022, versus the same month in 2021. February capacity rose 89.5% versus the year-ago period, and load factor climbed 25.8 percentage points to 64.7%.

•             North American carriers experienced a 236.7% traffic rise in February versus the 2021 period, significantly increased compared to the 149.0% rise in January 2022 over January 2021. Capacity rose 91.7%, and load factor climbed 27.4 percentage points to 63.6%.

•             Latin American airlines’ February traffic rose 242.7% compared to the same month in 2021, well up over the 155.2% rise in January 2022 compared to January 2021. February capacity rose 146.3% and load factor increased 21.7 percentage points to 77.0%, which was the highest load factor among the regions for the 17th consecutive month.

•             African airlines had a 69.5% rise in February RPKs versus a year ago, a large improvement compared to the 20.5% year-over-year increase recorded in January 2022 compared to the same month in 2021. February 2022 capacity was up 34.7% and load factor climbed 12.9 percentage points to 63.0%.

Domestic Passenger Markets

February 2022 (% year-on-year)                World share1  

RPK        ASK        PLF (%-pt)2         PLF (level)3

Domestic             62.4%    60.7%    39.7%    9.7%      74.3%

Australia              0.8%      36.0%    28.9%    3.4%      64.2%

Brazil     1.9%      32.5%    25.9%    4.0%      80.9%

China P.R.            17.8%    32.8%    27.7%    2.6%      66.9%

India      2.2%      -3.3%     -15.4%  10.7%    85.4%

Japan    1.1%      35.1%    74.8%    -11.0%  37.5%

Russian Fed.       4.5%      9.1%      15.2%    -4.6%     81.7%

US          25.6%    112.5%  60.4%    19.3%    78.7%

1% of industry RPKs in 2021   2year-on-year change in load factor 3Load Factor Level

•             Brazil’s domestic traffic was up 32.5% in February, compared to February 2021, which was a slowdown compared to the 35.5% year-over-year growth recorded in January.

•             US domestic RPKs rose 112.5% year-on-year in February, an improvement compared to the 98.4% rise in January versus the prior year.

2022 vs 2019

The accelerated growth recorded in February 2022 compared to a year ago, is helping passenger demand catch-up to 2019 levels. Total RPKs in February were down 45.5% compared to February 2019, well ahead of the 49.6% decline recorded in January versus the same month in 2019. The domestic recovery continues to outpace that of international markets.

February 2022 (% ch vs the same month in 2019)               World share in1                RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -45.5%  -37.0%  -10.8%  69.8%

International      37.6%    -59.6%  -50.8%  -14.2%  65.4%

Domestic             62.4%    -21.8%  -12.9%  -8.4%     74.3%

The Bottom Line

 “As the long-awaited recovery in air travel accelerates, it is important that our infrastructure providers are prepared for a huge increase in passenger numbers in the coming months. We are already seeing reports of unacceptably long lines at some airports owing to the growing number of travelers. And that is even before the surge of Easter holiday travel in many markets next week. The peak Northern summer travel season will be critical for jobs throughout the travel and tourism value chain. Now is the time to prepare. Governments can help by ensuring that border positions are staffed adequately and that background security checks for new staff are managed as efficiently as possible,” said Walsh.

Cathay Pacific freighters to return to Europe in April

By Damian Brett

Tom Owen, Cathay Pacific Cargo

Cathay Pacific Cargo will restart freighter flights to Europe after an absence from the trade lane of more than three months.

The carrier will add a twice-per-week B747 freighter flight from Hong Kong to Frankfurt – operating on Wednesdays and Saturdays – starting on April 13.

From Frankfurt the airline will offer onward road feeder services to several other European destinations.

The carrier was forced to significantly curtail its long-haul freighter network at the end of last year after Hong Kong introduced strict Covid rules that meant pilots would need to quarantine for seven days on arrival.

“We’re still constrained on long-haul trade lanes, but we have been working hard to free up as much capacity as possible,” said Cathay Pacific director of cargo Tom Owen.

He added: “While we welcome the recent relaxation to some quarantine requirements in Hong Kong, our cargo operations are still restricted because of ongoing crew quarantine requirements at time of writing.

“We are hopeful further changes that will allow us to restore our long-haul freighter routes will not be too far away.”

Owen said that against a base level capacity of 20% against 2019 in January, Cathay Pacific is now up to around a third of its pre-pandemic capacity.

“We are flying as much as we can regionally and have increased flights into both North East and Southeast Asia,” said Owen.

Elsewhere, the carrier is also affected by the Ukraine crisis and has taken the decision to avoid Russian airspace.

The carrier’s flight schedule remains intact but there are lengthened flight times for services to Europe and the Americas.

“We are also monitoring daily fuel prices, which are now more volatile as a result of the crisis,” said Owen.

He added that the cargo business also continues to be affected by cross border trucking issues between China and Hong Kong.

“This is affecting volumes of cargo between Hong Kong and the Greater Bay Area, and this has been compounded by the lockdown measures taken in Shenzhen and Dongguan to support the Chinese Mainland’s dynamic zero-Covid policies,” said Owen.

“This is having an impact on production, cross-border trucking and transport in the short term. We are working closely with our freight-forwarder and shipper partners to ensure that we are still able to get as much cargo as we can through to our Hong Kong cargo terminal.”

CMA CGM Air Cargo is granted US foreign air carrier permit

By Rebecca Jeffrey

Source: CMA CGM

The US Department of Transportation (DOT) has granted CMA CGM Air Cargo a foreign air carrier permit.

“We tentatively find and conclude that the public interest warrants granting the applicant a foreign air carrier permit,” said the DOT in a document published on the government’s Regulation.gov website.

Air Cargo News reported that CMA CGM Air Cargo applied for a US foreign air carrier permit last month as CMA CGM moves forward with plans to launch its own Air Operator Certificate (AOC) airline in the first half of this year.

The order, issued on March 16, outlines permission for foreign scheduled and charter cargo air transportation of property and mail between the US and the European Union.

CMA CGM Air Cargo has also been granted an exemption allowing it to carry out services until its permit becomes effective.

The US application document confirms that CMA CGM Air Cargo plans to begin operations in Spring 2022 with service between Paris, France and Chicago in Illinois, New York and Atlanta in Georgia.

Parent CMA CGM has ordered two Boeing 777Fs, four Airbus A350Fs and one A330-200 to be converted into a freighter.

Founded in 2021, CMA CGM is the cargo airline division of the CMA CGM shipping group. It currently has a fleet of four Airbus A330-200Fs, operated by Air Belgium.

CMA CGM is not the only shipping company venturing into the airfreight sector. Mediterranean Shipping Co. (MSC) is interested in acquiring a stake in Italian state airline ITA Airways.

Russian fleet sanctions squeezing capacity

By Rebecca Jeffrey

Sanctions imposed on Russian aircraft fleets are further squeezing air cargo capacity in an already constrained market.

Pierre Van Der Stichele, vice president of global freight at aviation services group Air Partner told Air Cargo News that airspace bans on Russian aircraft imposed by the EU, US and others have added to the existing pressure on airfreight capacity caused by the Covid-19 pandemic and ongoing seafreight congestion.

“Sanctions affecting Russian carriers have significantly impacted the air cargo industry,” said Stichele. “Freighter capacity has already been heavily reduced by the pandemic; the disappearance of additional capacity due to sanctions only exacerbates the difficulties facing the air cargo industry.”

Volga-Dnepr Group’s Volga-Dnepr Airlines normally operates a fleet of 12 Antonov-124-100 aircraft and five Ilyushin-76-TD-90-VD aircraft, but these aircraft are now restricted to domestic operations.

The Volga-Dnepr Group (VDG) recently confirmed that it has taken the decision to temporarily suspend operations at its AirBridgeCargo and Atran Airlines subsidiaries in response to sanctions affecting lessors and the decision of Bermuda Civil Aviation Authority (BCCA) to suspend all airworthiness certificates for Russian aircraft on its registry.

AirBridgeCargo’s fleet consists of 17 Boeing 747 freighters and 1 Boeing 777 F. Atran Airlines’ fleet comprises five B737Fs.

VDG partner company, UK-registered Cargologicair operates two 747-400Fs, while Leipzig-based VDG partner company Cargologic Germany operates four 737Fs. No activity has been seen for either airline on Flightradar24 for the last seven days.

Stichele pointed out that Ukranian Antonov Airlines, whose unique AN-225 aircraft was recently destroyed, is currently using its remaining fleet for humanitarian relief flights.

“Additionally, the Ukrainian Antonov Airlines, whilst still operating its remaining AN124s, is focusing its serviceable fleet solely on relief efforts in support of Ukranian refugees. This leaves only one outsized cargo operator available for all commercial project cargo demands, the AN124 operated by Maximus Air Cargo.”

He added: “The situation has also driven up fuel prices to record levels, however,  the high level of demand is showing no sign of stopping.”

Antonov Airlines specialises in the transportation of outsized and project cargo worldwide using its fleet of seven AN-124-100 “Ruslan” aircraft, two of which have a payload up to 150 tonnes, its 60-tonne payload AN-22, and its unique 250-tonne payload AN-225 “Mriya”, which is the largest aircraft in the world, as well as smaller AN-74 and AN-26 aircraft.

Stichele added that P&O stopping its ferry operations while it carried out mass redundancy procedures put extra pressure on the airfreight sector, already under pressure from the pandemic and seafreight congestion.

“The ongoing situation with P&O Ferries presents the risk of severe port delays, particularly at Dover and Calais. The halting of these ferries and the group’s operations creates a surge of demand for other forms of travel such as rival ferry companies or the Euro Tunnel.

“This increase in demand will have a severe effect on already stretched cargo and freight capacity. Over 15% of all the freight and cargo capacity carried in and out of the UK is provided by P&O Ferries. Demand and costs for these services are at an all-time high and reorganising alternative means of delivery will be slow and costly.

“We have seen an increased interest in airfreight in the wake of previous situations that delayed sea freight services, such as the Suez Canal blockage last year. Additionally, there has already been a marked shift from sea to air due to ongoing seafreight problems as a result of pandemic-related disruption. We expect to see this trend continue as airfreight continues to become an ever more attractive option for exporters.”

EVA Air greenlights plans to convert 777-300s to freighters

EVA Airways (EVA Air) has announced plans to convert three Boeing 777-300ER passenger jets into freighters after reporting net income of TW$6.6 billion or US$232 million for 2021, on the back of strong cargo demand.

The Taiwanese carrier’s strong performance, which reversed losses amounting to TW$3.36 billion (US$120 million) in 2021, was largely attributed to a 70.3 percent increase in cargo revenue at TW$85.2 billion or around US$3.01 billion, according to EVA Air’s financial report issued on 14 March.

Israel Aerospace Industries (IAI) will convert the long-haul wide body aircraft, with the total transaction price estimated at US$120 million or US$40 million apiece.

Also read: IAI marks milestone in B777-300ER cargo conversion

The airline, which currently operates 34 B777-300ERs and eight B777Fs in its fleet, said that whilst the redesigned Boeing 777-300ERSF offers six tonnes less payload capacity than the 777F at 100 tonnes, its longer frame offers 25 percent more cargo volume, making it suitable for conducting e-commerce operations.

The 777-300ERSF programme, a partnership between IAI and aircraft lessor AerCap, is due to enter service this year. It is considered the most successful wide body cargo variant, with almost 850 sold, according to IAI’s website.

IATA Announces First Industry-Developed Passenger CO2 Calculation Methodology

22 March 2022  

Geneva – The International Air Transport Association (IATA) announced the launch of the IATA Recommended Practice Per-Passenger CO2 Calculation Methodology. IATA’s Methodology, using verified airline operational data, provides the most accurate calculation methodology for the industry to quantify CO2 emissions per passenger for a specific flight.

As travelers, corporate travel managers, and travel agents are increasingly demanding precise flight CO2 emission information, an accurate and standardized calculation methodology is critical. This is particularly true in the corporate sector where such calculations are needed to underpin voluntary emissions reductions targets.

“Airlines have worked together through IATA to develop an accurate and transparent methodology using verified airline operational data. This provides the most accurate CO2 calculation for organizations and individuals to make informed choices about flying sustainably. This includes decisions on investing in voluntary carbon offsetting or sustainable aviation fuel (SAF) use,” said Willie Walsh, IATA’s Director General.

IATA’s Methodology takes into account the following factors:

•             Guidance on fuel measurement, aligned with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

•             Clearly defined scope to calculate CO2 emissions in relation to airlines’ flying activities 

•             Guidance on non-CO2 related emissions and Radiative Forcing Index (RFI)

•             Weight based calculation principle: allocation of CO2 emission by passenger and belly cargo

•             Guidance on passenger weight, using actual and standard weight

•             Emissions Factor for conversion of jet fuel consumption to CO2, fully aligned with CORSIA

•             Cabin class weighting and multipliers to reflect different cabin configurations of airlines

•             Guidance on SAF and carbon offsets as part of the CO2 calculation

“The plethora of carbon calculation methodologies with varying results creates confusion and dents consumer confidence. Aviation is committed to achieving net zero by 2050. By creating an accepted industry standard for calculating aviation’s carbon emissions, we are putting in place essential support to achieve this goal. The IATA Passenger CO2 Calculation Methodology is the most authoritative tool and it is ready for airlines, travel agents, and passengers to adopt,” added Walsh.