Author: Admin

China anticipates 77% drop in passenger traffic during Golden Week

By : Vyte KlisauskaiteVYTE KLISAUSKAITE

Chinese carriers anticipate a 77% year-on-year decrease in air passenger traffic during the Labour Day holiday period, according to the Civil Aviation Administration of China (CAAC).

During Golden Week, Chinese carriers are expected to carry just 2 million passengers (approximately 400,000 passenger per day), Liang Nan, director of the Transportation Department of the CAAC, announced during a press conference on April 28, 2022.

The negative forecast was attributed to low “willingness” to travel following the “severe and complicated” COVID-19 pandemic situation in China.

The Labour Day holiday in China, also known as the Golden Week period, begins on April 30 and ends on May 4, 2022. Golden Week in China is usually considered a busy and lucrative travel period for the country’s carriers. 

Passenger traffic numbers in March 2022 dropped 69% year-on-year, said Wu Shijie, deputy director of Aviation Safety Office of CAAC.

In March 2022, China’s Big Three airlines – Air China, China Southern Airlines (ZNH), and China Eastern Airlines (CIAH) (CEA) – saw the lowest passenger numbers since the beginning of the COVID-19 pandemic in 2020. The steep plunge in passenger traffic was attributed to the rapid spread of the Omicron variant and stringent quarantine measures across the country.  

China is considered to be one of the strictest places in the world in terms of quarantine requirements and travel restrictions resulting from the COVID-19 pandemic. As part of the country’s strict Zero-COVID policy, millions of people in China have been placed under lockdown.  

14 / 04 / 2022

By Rebecca Jeffrey

Shanghai lockdown measures that are impacting airfreight operations in the city and putting pressure on supply chains are expected to continue for the next two to three weeks.

This is according to Flexport, which warned that although there is light at the end of the tunnel for Shanghai, cities near Shanghai are also seeing a rise in Covid cases and some areas have begun implementing similar lockdown measures.

“Due to the limited availability of trucking resources, trucking rates are at high levels and seeing delays of around three to five days in pick up times. More than 80% of commercial freighter services have been cancelled and airlines are looking into potentially shifting operations to nearby airports,” added the supply chain specialist on April 12.

Air Cargo News recently reported that operations at Shanghai Pudong International Airport (PVG) remain constrained.

Looking at South China, Flexport said that ex-Hong Kong flight frequency has “still not recovered” due to the impact of pandemic quarantine measures and disruption to flight schedules due to the Ukraine crisis, however, “demand is improving since lockdown measures were lifted in Shenzhen”.

Cross-border trucking capacity is still around 20% of the original capacity, while the ex-Shenzhen market demand is improving but is highly affected by cross-border trucking capacity.

Some shipments from Shanghai are also being re-routed to Shenzhen, and airfreight rates have increased compared to the week before. Flexport added.

It said Taiwan’s market demand is relatively stable, but transit demand has “dropped significantly”, partly due to the Shanghai Pudong Airport operating constraints.

Meanwhile in Europe, capacity remains a concern. “Freighter capacity is heavily reduced and booking to uplift window is approx 10-14 days,” said Flexport.

“Deferred routings are still providing a viable routing option if already tight lead times can take it. We also see cheaper options on the market to secondary hubs where airlines have regular passenger flights.”

It added that rates are high but stable due to capacity constraints. Jet fuel prices, exacerbated by longer flight times to avoid Russian and Ukraine airspace, have started to drop, however Flexport said “the benefits will not be passed on till the market stabilizes”.

Norman Global Logistics said in an update on April 13 that due to the Shanghai lockdown operating restraints “airline handling has become almost impossible, due to lack of staff”.

The company added that many factories and warehouses are closed, while major reductions in trucking capacity is being caused by a shortage of drivers unable to reach workplaces or not able to cross borders; delays and shortages caused due to mandatory PCR tests; extended waiting times at cargo facilities; and restrictions on highways networks and cross border areas.

Dimerco added on April 11: “Traffic control for road transportation is getting more strict now.”  It said that cross-border trucking capacity continues to be very limited and a Shenzhen-Hong Kong freighter service has been launched in response to this capacity drop, although did not provide any more details on this service.

Valius VenckunasVALIUS VENCKUNAS

Travel chaos is an inevitable consequence of almost every holiday. During some holidays, the impact on the travel industry is minimal, but during others, it can be far more disruptive. 

This year, however, holidaymakers have already seen their Easter plans thrown into disarray. With warnings of further travel disruptions still to come, Easter 2022 could possibly be one of the most disruptive periods to date, with record traffic numbers, staff shortages and COVID-related absences all adding to the chaos. 

Usually, flight cancellations during the Easter holiday season are caused by one specific reason, rather than multiple events. For example, in 2021 the Easter period coincided with Delta Airlines (DAL), one of the largest American carriers, facing crew shortages due to several factors, including staff members reporting side effect following their COVID-19 vaccinations. Other airlines, particularly in Europe, managed to avoid the same fate, and the wave of flight cancellations were specific to Delta. 

In 2019, cancellations in Europe were largely confined to Spain, as the country faced widespread strike action by airport employees. In the US, severe storms disrupted schedules in multiple states, resulting in more than 1000 cancellations across the Eastern coast, while the remainder of the US was unaffected. 

2018 saw one of the worst Easters in aviation for decades, as travel in Europe was paralyzed by Eurocontrol system failures. In the US, a cyclone, dubbed ‘nor’easter’, led to thousands of cancelations during the week before the festive weekend.

Unprecedented chaos 

In 2022, however, it seems that many of these factors have combined to cause unprecedented chaos. And with the Easter weekend just a few days away, many European countries have already been reporting a surge in cancellations unlike anything the industry has experienced before. 

In the United Kingdom, airports have been impacted by a spike in COVID-related absences, resulting in delays and cancellations. The disruption is showing little sign of coming under control before the Easter weekend, as British Airways and easyJet, the nation’s two largest carriers, continue to suffer as a result of staff shortages and the resulting disruptions. 

Additionally, many popular holiday destinations, such as Spain and Malta, have scaled back restrictions ahead of the Easter break. Since then, Spain announced that it would be expanding its public transport schedules to cope with the increased demand, as well as the possible spillover of the chaos seen at UK airports. 

However, Spain and Portugal are still reeling from the aftermath of historic storms, with disruption expected to last for weeks to come. 

Strike action, standstills and staff shortages 

The outcome of strike action looms larger still with airport staff in at least five European countries, many of which are considered major travel destinations, having organized or announced strikes in the days leading up to Easter. 

A union strike by Italy’s air traffic control (ATC) workers is expected to have minimal effect on travel due to its short duration and preemptive measures to mitigate its impact, implemented by Spanish authorities. Similarly, unprecedented walkouts of German airport workers, which resulted in thousands of flights cancellations during the last week, appear to have led to agreements and a return to schedule. However, German airports have still reported a shortage of workers, warning that the numbers are inadequate to manage the surge in travelers during the Easter period. 

However, the impact of strike action by air traffic controllers in Poland is expected to be far greater. Conflict between ATC workers and the Polish Air Navigation Services Agency (PANSA) has resulted in staff shortages across the country’s airports leading to an unprecedented number of flight delays and cancellations. Alongside an increase in travel associated with the relaxing of COVID-19 restrictions and the wider effect of the war in Ukraine, the ongoing strike action has prompted Poland’s Civil Aviation Authority to issue a warning to passengers that the difficulties could continue. 

In Portugal, airport security companies, alongside baggage handlers from at least one major airport, called for strikes leading up to Easter. Similarly, an indefinite strike notice was issued by a Belgian trade union to Ryanair management in Dublin on behalf of the Belgium-based cabin crew of the low-cost airline. Lastly, Heathrow cargo handlers have also threatened to strike, a development that could bring air transportation in the UK to a near standstill.

Trade unions across Europe say the strikes are a response to major blunders in post-pandemic policy and planning that has resulted in airports being understaffed and employees overworked and underpaid. If true, this could be as devastating as the pandemic itself, at least in the short term. However, it is too early to tell if these factors will result in the worst Easter in the history of air travel. But, so far, the signs suggest that it could well be the case, as thousands of travelers face the possibility of spending a significant part of their Easter break stranded in European airports.

By Damian Brett

Shipping giant AP Moller Maersk has launched its new air cargo business as it looks to meet customer demand for supply chain security.

The company, which owns the world’s largest container shipping line, said that its new Maersk Air Cargo business will be operational in the second half of the year and will utilise Denmark’s Billund Airport as its main hub and offer daily flights.

The new airfreight company is the result of the existing in-house aircraft operator, Star Air, transferring its activities into Maersk Air Cargo.

Last year, the company announced that it had purchased two new B777 Freighters to be delivered by Boeing in 2024 and leased three B767-300 Freighters which will be operational next year through Cargo Aircraft Management, the leasing arm of ATSG.

The B767 freighters will be utilised on US-China operation the company said.

Maersk’s ambition is to have approximately one third of its annual air tonnage carried within its own controlled freight network.

This will be achieved through a combination of owned and leased aircraft, replicating the structure that the company has within its ocean fleet.

The remaining capacity will be provided by strategic commercial carriers and charter flight operators.

The decision to launch an air cargo business comes as supply chains face continual disruption as a result of Covid lockdowns, port logjams and the Ukraine crisis.

Airfreight has provided some relief to companies looking to move urgent cargo to maintain supply chains.

Aymeric Chandavoine, global head of logistics and services at AP Moller–Maersk, said: “Airfreight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo.

“We strongly believe in working closely with our customers. Therefore, it is key for Maersk to also increase our presence in the global air cargo industry by introducing Maersk Air Cargo to cater even better for the needs of our customers.”

Torben Bengtsson, global head of air & less than container load, AP Moller–Maersk, added: “Maersk Air Cargo is an important step of the Maersk Air Freight strategy, as it will allow us to offer customers a truly unique combination of air freight integrated with other transport modes.

“We see an increased and continued demand for air cargo both today and going forward as well as a growing demand for end-to-end logistics, why it is important for us to strengthen our own-controlled capacity and advance further on our air freight strategy.”

The company said that Maersk Air Cargo also hopes to enter into an agreement with the Flight Personnel Union (FPU) which is a part of the Danish Confederation and Trade Unions (FH).

Jan Hessellund, chief executive of Billund Airport, said: “We have had growth, defied the corona and set a new record year in cargo in 2021. It does not happen without good partners, and we do what we can to make our partners good.

“Now Maersk Air Cargo enters the stage at Billund Airport and raises it a notch. We are incredibly proud that we are being chosen as Maersk’s European hub for air freight, and we look forward to developing the collaboration to even new heights.”

As well as investing in air cargo, the shipping company has also been adding to its forwarder network, recently acquiring Senator International which has a large presence in the air cargo market.

It followed this deal up with the purchase of Pilot Freight Services, another forwarder with a strong presence in air cargo.

Rival shipping line CMA CGM has also launched an air cargo business and became one of the first companies to order Airbus’ recently launched A350 freighter.

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.

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.

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.

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.

 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.

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.”