Odys Aviation and Aramex Announce Partnership to Develop Cargo Operations in the United Arab Emirates and Oman

Odys Aviation, a sustainable aviation company building hybrid-electric vertical take-off and landing (VTOL) aircraft and Aramex, a market-leading provider of express delivery and logistics services to the Middle East and other emerging economies, today announced a partnership to develop cargo operations in the UAE, Oman and further afield in the region. Odys Aviation's state-of-the-art aircraft, designed in multiple configurations for cargo, will be capable of delivering all-electric propulsion for distances up to 320 kilometres and will offer a hybrid-electric range of more than 1,200 kilometres. As a result, flights operated via these aircraft have the potential to reduce carbon emissions on pan-GCC flights by up to 76 per cent and provide a zero-carbon air cargo alternative for routes across the UAE, Oman and beyond.

Under the terms of the partnership, Odys Aviation and Aramex intend to collaborate on the development of autonomous logistics programs which will ultimately introduce cargo flights leveraging Odys Aviation’s cargo aircraft and Aramex’s fleet management capabilities. The first pilot programs will utilize Odys Aviation’s Laila aircraft (22 ft wingspan and 130 lbs payload) and will expand to include the company’s Alta aircraft, a full-scale vehicle with payload capabilities up to one ton. Aramex intends to support pilot training and a test flight program which will demonstrate the movement of cargo between its regional locations. The teams will further work jointly to tailor the Concept of Operations (CONOPS) that will develop Odys Aviation’s aircraft to serve specific local environments. Upon approval from regional regulatory bodies, the two companies intend to launch operations and commercial activities and expand beyond test programs to demonstrable routes and new markets within the GCC.

Air Cargo Demand Up 8.3% in November

The International Air Transport Association (IATA) released data for November 2023 global air cargo markets indicating the strongest year-on-year growth in roughly two years. This is partly due to weakness in November 2022, but also reflects a fourth consecutive month of strengthening demand for air cargo.

Global demand for air cargo, measured in cargo tonne-kilometres (CTKs), increased by 8.3% compared to November 2022. For international operations, demand growth was 8.1%. 

Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 13.7% compared to November 2022 (+11.6% for international operations). Most of the capacity growth continues to be attributable to the increase in belly capacity as international passenger markets continue their post-COVID recovery.

Compared to November 2019 (pre-COVID-19), demand is down 2.5% while capacity is up 4.1%.

Some indicators to note include: 

•    Both the manufacturing output and new export order Purchasing Managers Indexes (PMIs) – two leading indicators of global air cargo demand—continued to hover just below the 50-mark in November with small positive movements indicating a deceleration of the economic slowdown. 

•    Global cross-border trade recorded growth for the third consecutive month in October, reversing its previous downward trend.

•    Inflation in major advanced economies continued to soften in November as measured by the corresponding Consumer Price Index (CPI), centering around 3% year-on-year for the United States, Japan, as well as the EU, in November. In the meantime, China exhibited negative annual growth in its CPI for the second time in a row.

 

•    Air cargo yields (including surcharges) continued their significant upward trend (+8.9% since October). Rising yields are in line with improving air cargo load factors over recent months. This could be tied in part to booming e-commerce deliveries from China to western markets.

“November air cargo demand was up 8.3% on 2022—the strongest year-on-year growth in almost two years. That is a doubling of October’s 3.8% increase and a fourth month of positive market development. It is shaping up to be an encouraging year-end for air cargo despite the significant economic concerns that were present throughout 2023 and continue on the horizon,” said Willie Walsh, IATA’s Director General.

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November 2023 (% year-on-year) World share1 CTK ACTK CLF (%-pt)2 CLF (level)3 Total Market 100.0% 8.3% 13.7% -2.3% 46.7% Africa 2.0% 3.9% 14.0% -4.1% 42.1% Asia Pacific 32.4% 13.8% 29.6% -6.6% 47.9% Europe 21.8% 6.7% 6.5% 0.1% 57.0% Latin America 2.7% 4.2% 7.7% -1.2% 36.3% Middle East 13.0% 13.5% 15.4% -0.8% 46.9% North America 28.1% 1.8% 4.0% -0.9% 40.8%

1% of industry CTKs in 2022   2year-on-year change in load factor   3Load Factor Level

November Regional Performance (total market)

Asia-Pacific airlines saw their air cargo volumes increase by 13.8% in November 2023 compared to the same month in 2022. This performance was significantly above the previous month’s growth of 7.6%. Available capacity for the region’s airlines increased by 29.6% compared to November 2022 as more belly capacity came online with the removal of COVID-19 restrictions.

North American carriers had the weakest demand growth in November with a 1.8% increase (YoY) in cargo volumes. This was, nonetheless, a significant improvement in performance compared to October’s -1.8% contraction. Capacity increased by 4.0% compared to November 2022.

European carriers saw their air cargo volumes increase by 6.7% in November compared to the same month in 2022. This was a stronger performance than in October (1.0%). Capacity increased 6.5% in November 2023 compared to 2022.

Middle Eastern carriers had the strongest performance in November 2023, with a 13.5% year-on-year increase in cargo volumes. This was similar to the significant improvement noted in the previous month’s performance (+13.0%). Capacity increased 15.4% compared to November 2022.

Latin American carriers experienced a 4.2% increase in cargo volumes compared to November 2022, very similar to the 4.0% year-on-year increase recorded for October. Capacity in November was up 7.7% compared to the same month in 2022.

African airlines saw their air cargo volumes increase by 3.9% in November 2023, slightly improved compared to October’s +2.9% growth performance. Capacity was 14.0% above November 2022 levels.

Repsol to supply SAF to Atlas Air and Inditex for regular use on cargo flights....

Flights from Zaragoza Airport (Spain) carried out by Atlas Air for Inditex are using sustainable aviation fuel (SAF) produced by Repsol.

Atlas Air becomes the first cargo airline to use SAF regularly on its freight transport flights in Spain, marking a new milestone towards the decarbonization of the airline sector.

Repsol, a multi-energy company committed to leading the energy transition, announced that it has begun supplying sustainable aviation fuel (SAF) to Atlas Air for use in all its flights with its customer Inditex from Zaragoza Airport (Spain). Beginning in November, Atlas Air is initially incorporating 5% SAF in all its flights.

The agreement makes New York-based Atlas Air the first cargo airline to use SAF regularly on its cargo flights in Spain, marking a new milestone in the airline sector. The initiative is in line with the companies’ commitments to achieve their respective carbon footprint reduction goals, and also positions them to comply with anticipated compliance measures included in the ReFuelEU Aviation regulations that require use of 2% renewable fuels in 2025, 6% in 2030 and 70% in 2050, respectively.

“With this agreement, we take another step in the decarbonization of aviation. We show that SAF is the future, but also the present. With the upcoming launch of our new advanced biofuels plant in Cartagena (Spain), we are ready to supply the sector with the SAF it needs to realize its decarbonization ambitions,” said Óliver Fernández, Director of International Aviation at Repsol.

“We are committed to contributing to the sustainability of the aviation sector and appreciate this opportunity to work with our valued partners at Inditex and Repsol,” said Richard Broekman, Chief Commercial Officer and Head of Sustainability for Atlas Air Worldwide. “It is critical for our sector to work together in driving wider adoption and availability of SAF, which ultimately will have a positive impact on our industry and the environment.”

Air Cargo Demand up 3.8% in October says IATA

The International Air Transport Association (IATA) released data for October 2023 global air cargo markets indicating the third consecutive month of stronger year-on-year demand.

Global demand, measured in cargo tonne-kilometres (CTKs*), increased by 3.8% compared to October 2022. For international operations, the demand lagged slightly at 3.5%. 

Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 13.1% compared to October 2022 (11.1% for international operations). This was largely related to the growth in belly capacity. International belly capacity, for example, rose 30.5% year-on-year on the strength of passenger markets.

Several factors in the operating environment should be noted:

•    Economic activities slowed in October. With the Purchasing Managers’ Index for manufacturing output and export orders for major economies (excluding the US) remaining below the critical 50 mark, there is a clear marker for economic challenges ahead.

•    Inflation in major advanced economies continued to ease from its peak in terms of Consumer Price Index (CPI), reaching between 3% and 4% for the US and for the EU respectively, in October. China’s CPI, however, indicated deflation for the second time this year, raising concerns of an economic slowdown.

•    Global trade reversed its downward trajectory and stabilized in September. Although below its 2022 peak, global cross-border trade is more than 5% above pre-pandemic levels.

•    After a continuous 17-month decline, cargo yields ticked-up in September and continued into October with a 2.6% month-on-month gain, remaining well-above pre-pandemic levels.

“Demand for air cargo was up 3.8% in October. That marks three consecutive months of year-on-year growth, placing air cargo on course to end 2023 on a much stronger footing than it began the year. Recovering demand, slightly stronger yields and the uptick in trade are all good news. But with demand still 2.4% below pre-pandemic levels, and much uncertainty remaining over the trajectory of the global economy, optimism must be balanced with caution. Nonetheless, a continued strong peak year-end season will certainly help the sector to manage through whatever turns the global economy might take in 2024,” said Willie Walsh, IATA’s Director General.

IAG Cargo hosts roundtable in India to discuss growth in the region

The cargo division of International Airlines Group  - IAG Cargo, hosted a roundtable at the JW Marriott Hotel in New Delhi to discuss key air cargo trends and business updates. Speakers included David Shepherd, Chief Executive Officer at IAG Cargo, Kapil Madhok, Regional Manager, Air Services, India Sub-Continent Region at Expeditors, Camilo Garcia Cervera, Chief Sales and Marketing Office at IAG Cargo, and Yashpal Sharma, President of Air Cargo Forum India (ACFI), moderated by Ankush Chawla, South Asia Commercial Manager for IAG Cargo. 

IAG Cargo has 56 flights per week from India across 5 routes and has seen a 31% increase in tonnage versus last year – with notable growth in Constant Climate, Fresh and Courier

As the world adapts to the new normal post-pandemic, India has emerged as a global powerhouse for the production and exportation of key goods such as pharmaceuticals, high-tech e-commerce such as mobile phones, and fresh produce. 

This growth is reflected in data from IAG Cargo: operating 56 flights per week from India across 5 routes, the company has seen a 31% increase in tonnage versus last year – with a notable increase in Constant Climate, Fresh and Courier services. 

David Shepherd, Chief Executive Officer, of IAG Cargo said: “This is my first trip to India since re-joining the business and I am delighted to be back. India is an exceptionally important part of our global network. Every day we connect customers through five gateways in India to the UK and onto our expansive network. Next week, we will increase our capacity going into – and out of – Delhi through up-gauging services from the current 787s with A350s. With incredibly strong pharmaceutical, high-tech and fresh produce industries, we are always looking for ways to support this growth.”

Premium Hong Kong travel lifestyle brand Cathay collaborates with AWS to reduce IT infrastructure costs by 40%

Amazon Web Services - AWS has announced that Cathay, the premium travel lifestyle brand that includes Hong Kong's hometown airline Cathay Pacific, has selected AWS as its strategic cloud provider and is working with AWS to establish the Cathay Machine Learning Innovation Hub. 

The program combines AWS's broad set of cloud technologies and comprehensive cloud skills resources with Cathay's machine learning (ML) expertise to deliver companywide innovations across its global operations, unlocking business value and equipping employees with ML skills. As part of the company’s ongoing digital transformation, Cathay will also move the majority of its IT workloads to AWS.

Working with AWS, Cathay has already identified hundreds of ML use cases and successfully deployed more than 50 ML models. For example, Cathay and AWS developed ML models that accurately predict the demand for inflight meals, to help minimize food waste, and dynamically forecast available cargo space for each flight. The Cathay Machine Learning Innovation Hub will advance this work by leveraging AWS technologies to identify use cases and accelerate ML innovations for its travel, lifestyle, and cargo business lines. In the long term, Cathay plans to make industry solutions developed through the Cathay Machine Learning Innovation Hub, such as cargo revenue planning and aviation route prediction, available to other companies in the commercial aviation sector.

 AWS to reduce IT infrastructure costs by 40% and establish the Cathay Machine Learning Innovation Hub to automate operations and enhance air travel experiences

Cargojet to off load four Boeing 757 jets

Air cargo operator Cargojet is slimming down its fleet as it struggles to deal with a massive downturn in business despite recently giving shareholders a 10% increase in dividends. 

The Canadian carrier is cutting capacity and trying to preserve its strong cash flows by offering at least four of its converted Boeing 757 aircraft up for sale according to the airline's Chief Financial Officer Scott Calver during a third-quarter results call. 

The planes will continue to be available for other companies to lease until they are sold the airline confirmed. Earlier this year Cargojet sold one Boeing 777-300 aircraft for $36 million resulting in a loss on sale of $3.6 million. Two Boeing 777-300 hulls suffered significant damage due to severe hailstorms, the airline assessed the damage cost $13.8 million, for which the insurers paid  $12.2 million. Cargojet has also paused all planned conversions on 767s and 777s. 

After launching Cargojet 22 years ago as Founder and Chief Executive Officer, Dr. Ajay Virmani will be stepping into the role of Executive Chairman effective January 1, 2024 and the Corporation has announced leadership appointments in a separate announcement. This strategic move reflects Dr. Virmani’s dedication to the company’s long-term success and the need to ensure a seamless transition in the leadership.

Dr. Ajay Virmani, who has served as the CEO since its inception in 2001, along with the team he built, has been instrumental in Cargojet’s remarkable journey from a start-up to Canada’s #1 cargo airline. Just last week Dr. Virmani was appointed to the Order of Ontario.  The Globe and Mail honored Dr. Virmani as the CEO-Strategist of the year in 2020. In 2004, Dr. Virmani was awarded the “Entrepreneur of the Year award” by Ernst &Younge. Recognizing his entrepreneurial and philanthropic contribution to Canada, he was inducted into Canada’s Walk of Fame with his own star in 2021. Cargojet and its leadership has also been recognized as the 50 Best Managed Companies by Deloitte’s and has been a consistent winner of Canada’s Best Cargo Airline award 21 years running.

Air cargo demand up nearly 2% in September.

The International Air Transport Association, the organisation that represents some 300 airlines comprising 83% of global air traffic has released data for September 2023 global air cargo markets, showing continuing demand recovery. 

• Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.9% compared to September 2022 levels (+1.6% for international operations). 

• Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 12.1% compared to September 2022 (+11.0% for international operations). Growth was largely related to international belly capacity which rose 31.5% year-on-year as airlines scaled up operations to meet peak-northern summer travel season demand. 

• Several factors in the operating environment should be noted: 

    In September, both the manufacturing output Purchasing Managers Index or PMI (49.7) and new export orders PMI (47.7) saw a slight improvement to the previous month. They remained, however, below the critical 50-point threshold, indicating a continuing, but slightly slower, annual decline in global manufacturing production and exports.

    Global cross-border trade contracted for the fifth month in a row in August, decreasing 3.8% year-over-year. This reflects the cooling global macroeconomic environment. 

    Annual growth in US consumer prices stabilized in September at 3.7%, the same rate as in August. In Europe and Japan consumer price inflation slowed by 1.0 and 0.2 percentage points, respectively, to 4.9% and 3.0%, (also respectively). In China, deflation-fighting policy measures saw an annual rise in consumer prices of 0.1%.      

    In September, the average price of jet fuel was USD 131.0 per barrel, marking a 43.1% increase from the May 2023 price. Recouping some of this added cost from surcharges in September contributed to the first increase in air cargo yields since November 2022. 

"Air cargo eked out modest growth (1.9%) in September despite falling trade volumes and high jet fuel prices. That clearly shows the strength of air cargo’s value proposition. With the key export order and manufacturing PMIs hovering near positive territory, we can be cautiously optimistic for a strong year-end peak season," said Willie Walsh, IATA’s Director General.

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September Regional Performance

Asia-Pacific airlines saw their air cargo volumes increase by 7.7% in September 2023 compared to the same month in 2022. This was a significant improvement in performance compared to August (+4.6%). Carriers in the region benefited from growth on three major trade lanes: Europe-Asia (+9.6%), Middle East-Asia (+7.0%) and Africa-Asia (+12.8%). Available capacity for the region’s airlines increased by 30.5% compared to September 2022 as more belly capacity came online from the passenger side of the business (a year ago, the key Asian markets of Japan and China were still largely under severe COVID-19 travel restrictions). 

North American carriers had the weakest performance in September, with a 2.2% decrease in cargo volumes. This was a decline in performance compared to August (-1.4%). Although contractions in the North America-Asia trade lane narrowed (from -4.3% in August to -1.8% in September) and the North America-Europe market stabilized its decline at (-2.5%) for the second month in a row. Carriers in the region did not benefit significantly. Capacity increased moderately by 0.2% compared to September 2022.

European carriers saw their air cargo volumes decline by 1.5% in September compared to the same month in 2022. This was a weaker performance than in August (-0.6%). Carriers in the region suffered from further contractions in the within Europe market (-5.7% in September vs -5.2% in August). Gains made from the expansion in the Middle East-Europe trade lane (+3.3% in September vs +0.5% in August) offset some declines from the within Europe performance. Capacity increased 4.7% in September 2023 compared to 2022.

Middle Eastern carriers had the strongest performance in September 2023, with a 2.5% year-on-year increase in cargo volumes. This was an improvement from the previous month’s performance (+1.3%). Carriers in the region benefited from growth in the Middle East–Asia (+7.0%) and Middle East–Europe markets (+3.3%). Capacity increased 16.1% compared to September 2022. 

Latin American carriers experienced a 2.3% increase in cargo volumes compared to September 2022. This was a significant decrease in performance compared to the previous month (+6.2%). Capacity in September was up 14.4% compared to the same month in 2022. 

African airlines saw their air cargo volumes decline by 0.1% in September 2023, despite the strong growth of demand on the Africa-Asia trade lane (+12.8%). This was an improvement in performance compared to August (-3.5%). Capacity was 2.7% above September 2022 levels. 

September 2023 (% year-on-year) World share1 CTK ACTK CLF (%-pt)2 CLF (level)3 Total Market 100.0% 1.9% 12.1% -4.4% 43.8% Africa 2.0% -0.1% 2.7% -1.2% 43.6% Asia Pacific 32.4% 7.7% 30.5% -9.9% 46.6% Europe 21.8% -1.5% 4.7% -3.1% 50.0% Latin America 2.7% 2.3% 14.4% -3.8% 31.9% Middle East 13.0% 2.5% 16.1% -5.6% 42.4% North America 28.1% -2.2% 0.2% -1.0% 39.2%

1% of industry CTKs in 2022   2year-on-year change in load factor   3Load Factor Level

Air Cargo Market Analysis (iata.org)

   * Please note that as of January 2020 onwards, we have clarified the terminology of the Industry and Regional series from ‘Freight’ to ‘Cargo’, the corresponding metrics being FTK (changed to ‘CTK’), AFTK (changed to ‘ACTK’), and FLF (changed to ‘CLF’), in order to reflect that the series have been consisting of Cargo (Freight plus Mail) rather than Freight only. The data series themselves have not been changed. 

•    IATA (International Air Transport Association) represents some 300 airlines comprising 83% of global air traffic.

IAG Cargo announces new 2023-2024 winter schedule

IAG Cargo increases frequency on routes including to Miami, Dubai and Cape Town from London Gatwick and London Heathrow

IAG Cargo launches new route to Ghana, and restarts Costa Rica from London Gatwick

IAG Cargo customers to benefit from new schedule at the end of October through to March 2024

IAG cargo, the cargo division of International Airlines Group (IAG), is announcing increased services as part of the new winter schedule connecting its hubs in London, Madrid and Dublin to key destinations across the world. Customers will benefit from this additional capacity, starting at the end of October through March 2024. 

There will be increased capacity on several key routes. These routes include London to Cape Town (CPT), Accra (ACC), Doha (DOH), and Miami (MIA), offering 14 flights a week to both Miami and Doha, and 17 flights a week to Cape Town. Out of Madrid, IAG Cargo will offer additional capacity on routes to Bogota, Colombia (BOG), Santiago, Chile (SCL), Quito, Ecuador (UIO) and Santa Domingo, Dominican Republic (SDQ). 

The winter schedule includes restarting services between London Gatwick to Cape Town and Costa Rica utilising Boeing 777-200s. An extra daily service to Doha (DOH) has been introduced from London Heathrow, while services to Miami have resumed from Dublin. Capacity will also be available between Rio De Janeiro, Brazil (GIG) and Buenos Aires, Argentina (EZE). 

Silk Way West Airlines takes delivery of first Boeing 777 Freighter

The cargo carrier is modernizing its fleet with five Boeing 777 Freighters

Silk Way West Airlines' first Boeing 777 Freighter arrived at Heydar Aliyev International Airport today as the airline becomes the newest operator of the world's largest, longest range and most capable twin-engine freighter. The 777 Freighter will enable Silk Way West to increase its capacity to meet growing cargo demand around the globe.

Silk Way West Airlines’ first Boeing 777 Freighter arrived at Heydar Aliyev International Airport today as the airline becomes the newest operator of the world's largest, longest range and most capable twin-engine freighter. (Photo: Boeing)

"Delivery of this aircraft marks a defining moment in our strategic plan to make Silk Way West Airlines greener, more fuel efficient, and better positioned for growth from conception to reality," said Fadi Nahas, vice president of Silk Way West Airlines, Americas. "This expansion of the fleet will open up opportunities for Silk Way West Airlines to boost the volume of flights and extend our reach to additional strategic destinations, reflecting the growing importance of our home base of Baku as a regional and global transportation hub."

IAG Cargo launches Constant Climate in Cincinnati

IAG Cargo has expanded its Constant Climate global network that serves the pharmaceutical, bioscience and healthcare industry adding Cincinnati Northern Kentucky International Airport as an approved station.

IAG Cargo has over 100 approved stations across six continents 

Cincinnati’s strategic location serves as an ideal station, facilitating freight forwarders throughout the United States in transporting an array of healthcare items from vaccines to clinical trial medicines.

IAG Cargo, the cargo division of International Airlines Group (IAG), has announced this week Cincinnati, Northern Kentucky International Airport as its latest station in the United States to be approved to transport time and temperature-sensitive healthcare products. Bringing the total number of approved Constant Climate stations in the United States to 21. 

This newly established station will facilitate the movement of pharmaceuticals that require precise time and temperature management between Cincinnati and London Heathrow. It will leverage IAG Cargo’s extensive network which links six continents to transport critical cargo such as vaccines, medicinal drugs and clinical trial medication around the world. This service will be of special interest to pharmaceutical customers located in Ireland and India whose life-saving medicines frequently transit through London Heathrow to the United States.

Jordan Kohlbeck, Head of Pharmaceutical at IAG Cargo, added: “We are very excited about the opening of a new Constant Climate station at Cincinnati airport. The opening of Cincinnati will allow us to support more customers globally and provide another route by which they can utilise our cold chain solution to transport their key pharmaceuticals. We look forward to working with our partners and customers to increase our pharmaceutical offerings with this new addition.” 

IAG Cargo’s Constant Climate product is a state-of-the-art cold chain solution that caters specifically to the transportation of pharmaceuticals, such as vaccines, biotech products, diagnostics samples, or any other temperature-sensitive pharmaceutical material. During the first half of 2023, Constant Climate, IAG Cargo’s cold chain product for transporting pharmaceutical products, experienced a 45 per cent increase in the volume of pharmaceuticals transported across its network compared to the previous year. 

IAG Cargo’s new 10,000m2 facility New Premia at London Heathrow, launched in May 2023, features a cutting-edge Constant Climate Quality Centre (CCQC) for pharmaceuticals, with 27 dedicated cool cells and temperature facilities available from +2°C to +8°C (COL), +15°C to +25°C (CRT) and -20°C (FRO) ensuring sensitive shipments are held in a temperature-controlled environment at all times.

Korean Air to fully transition to electronic air waybill

Korean Air will begin its full-scale digital transition to electronic air waybill (e-AWB) to replace conventional paper air cargo transport documents. The full transition will first apply to documents for general cargo departing from Korea bound for North America, Europe, Japan and other select markets.

e-AWB is a digital replacement for traditional paper air waybills. Whereas paper air waybills require in-person visits for documentation, printing, and submission, the digital transition will streamline the entire process from reservations to final delivery.

The transition will also enhance data quality and accuracy to allow the airline to share essential information more transparently. Simplifying processes and eliminating costs will also increase efficiency in the AWB framework. By going paperless, the airline will also be able to practice its ESG initiatives to make a sustainable impact.

To minimize operational disruptions, Korean Air held consultations and completed trial operations with all stakeholders, cargo clients and forwarders. The airline will mandate e-AWB for Korea-outbound cargo starting from January 2024, and plans to expand the digital transition for all Korean Air Cargo departing from all global stations in due course.

“Taking this digital step forward will bring an innovative paradigm to logistics, and we stand behind IATA’s effort to phase in e-AWB for air cargo digital transformation, ” said a Korean Air official. “We believe that Korean Air’s commitment to international industry initiatives will help raise Korea’s air cargo industry competitiveness.”

Korean Air introduces sustainable aviation fuel program for its Cargo operation.

Korean Air will launch a program to use sustainable aviation fuel (SAF) for air cargo operations in cooperation with air cargo customers and forwarders.

Customers can make customized contributions through the Korean Air Cargo SAF program and reduce their carbon footprint. Korean Air will use the contributions to purchase additional SAF and share with customers the amount of carbon emissions reduced by using SAF.

The airline’s initiative is a part of its ongoing effort to reduce carbon emissions and raise awareness in the air cargo sector to achieve net zero carbon emissions by 2050.

SAF is an environmentally-friendly aviation fuel derived from alternative raw materials that may be blended with existing conventional jet fuel. From production to consumption, sustainably-produced SAF may reduce carbon footprint up to 80% compared to existing fossil-derived aviation fuel. IATA expects SAF to account for 65% of the mitigation needed to achieve the industry’s net zero goals by 2050.

Korean Air has been at the forefront in paving the foundation for SAF usage in the Korean domestic aviation industry. The airline has actively participated in the Korean government’s “eco-friendly biofuel activation alliance” since last October, to introduce and promote new biofuel in Korea. The airline will continue to work with stakeholders in the government, private institutions, and refiners to review various domestic and international demonstration projects to increase SAF production and application.

“We're pleased to work together with our clients to reduce carbon emissions from cargo operations through the SAF program,” said Jaedong Eum, Senior Vice President and Head of Korean Air’s Cargo Business Division. “Korean Air is committed to sustainable development with our next generation in mind.”

Gunnar Már Sigurfinnsson resigns as Managing Director of Icelandair Cargo

There is more upheaval at the former national carrier of Iceland,  Icelandair as Gunnar Már Sigurfinnsson has decided to resign as Managing Director of Icelandair Cargo and will also leave Icelandair Group’s Executive Committee. 

It would seem the toxic culture at Icelandair has taken another scalp as Gunnar Már's resignation is with immediate effect but will, according to the company continue to work within Icelandair in the upcoming months and support his successor as needed. 

Einar Már Guðmundsson, Director of Icelandair’s Technical Operations, will become the Interim Managing Director of Icelandair Cargo and become a member of Icelandair Group’s Executive Committee while holding the interim position. A formal process will now be initiated to search for the future Managing Director of the company. 

Einar Már Guðmundsson has worked for Icelandair since 2015 as a Director at the company’s Technical Operations. Previously, Einar Már was the Leader of Procurement at Rio Tinto Alcan (ISAL) for three years and before that he was the Operations Manager of Skeljungur. Einar Már has an MBA degree from Copenhagen Business School and a BS degree in Science of Fisheries from the University of Akureyri. 

Bogi Nils Bogason, President & CEO of Icelandair Group commented:  “Gunnar Már has been an important team member at Icelandair for decades where he has served in various important roles within the Company. He has been part of Icelandair’s Executive Management since 2005 where he served as Chief Commercial Officer for a total of over 5 years. He has then successfully led Icelandair Cargo for 15 years where he played a vital role during the Covid-19 pandemic by seizing opportunities within the cargo business and generating important revenue while Icelandair was facing unprecedented difficulties. On behalf of the Icelandair team, I want to thank Gunnar Már for his invaluable service throughout the years and I look forward to continuing working with him on the important projects that we have ahead of us in the upcoming months.” 

Air Cargo demand strengthens despite challenges in July

The International Air Transport Association (IATA) released data for July 2023 global air cargo markets, showing a continuing trend of recovering growth rates since February. July air cargo demand was tracking just 0.8% below the previous year’s levels. Although demand is now basically flat compared to 2022, this is an improvement on recent months’ performance that is particularly significant given declines in global trade volumes and rising concerns over China’s economy. Global demand, measured in cargo tonne-kilometers (CTKs*), tracked at 0.8% below July 2022 levels (-0.4% for international operations). This was a significant improvement over the previous month’s performance (-3.4%). Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 11.2% compared to July 2022 (8% for international operations). The strong uptick in ACTKs reflects the growth in belly capacity (29.3% year-on-year) due to the summer season. Several factors in the operating environment should be noted: In July, both the manufacturing output Purchasing Managers Index or PMI (49.0) and new export orders PMI (46.4) were below the critical threshold represented by the 50 mark, indicating a decline in global manufacturing production and exports. Global cross-border trade contracted for the third month in a row in June, decreasing 2.5% year-over-year, reflecting the cooling demand environment and challenging macroeconomic conditions. The difference between the annual growth rates of air cargo and the global goods trade narrowed to -0.8 percentage points in June. While air cargo growth is still lagging world trade, the gap is the narrowest since January 2022. In July, the global supplier delivery time PMI was 51.9, signaling fewer supply chain delays. All major economies, except China, had PMIs above 50. The U.S., Europe, and Japan recorded PMIs of 54.2, 57.7, and 50.4, respectively. Inflation saw a mixed picture in July, with the increase in US consumer prices picking up pace for the first time in 13 months. Meanwhile, in China, both consumer and producer prices fell, pointing to a possible deflationary economy.

IAG Cargo appoints new Sustainability Manager

IAG Cargo, the cargo division of International Airlines Group (IAG), has added to its transformation team, appointing Saleem Saeed as its new Sustainability Manager that will see IAG Cargo advance its sustainability journey.

Saleem steps into the role having previously worked within the construction sector and will use his experience and expertise to lead the sustainability strategy across the business. Saleem looks to enhance the current ‘Fit for Future’ strategy that will further infuse sustainability into IAG Cargo's core whilst encouraging partners and customers to join the business on this journey. 

“What truly energises me about joining IAG Cargo is the prospect of contributing to a global company in a dynamic setting," said Saleem. "Environmental and social responsibility are really important, ensuring everybody’s needs are addressed without compromising future generations’ requirements. This role will allow me to actively steer IAG Cargo's sustainability strategy  and empower our people to create a better future. I’m looking forward to building on the fantastic initiatives already in place." 

Saleem will drive forward new efficient ways of working to ensure IAG Cargo minimizes its carbon footprint across the organization – for example, the business has recently been trialling an electric terminal tractor and is actively exploring an expanded electric fleet. The vision is clear: for IAG Cargo to lead the charge in sustainable aviation cargo operations. 

Jenny Critchley, Chief Transformation Officer at IAG Cargo, commented: “Saleem’s appointment as our Sustainability Manager reinforces our dedication to pioneering eco-conscious practices within the air cargo sector. Saleem has a passion for sustainability, so I have no doubt that he will make this role his own, leading IAG Cargo into a new era of responsible operations. His passion for innovation and transformative change aligns seamlessly with our vision to be ‘Fit for Future’.”

ATSG completes record month of freighter deployments

Air Transport Services Group, a leading provider of medium wide-body aircraft leasing, contracted air transportation, and related services, announced today that its leasing subsidiary Cargo Aircraft Management (CAM) has delivered a record six converted freighters under lease in one month to customers around the globe, bringing ATSG’s total deliveries this year to nine.

Converted freighter deliveries by the company in the past month, each of which are under lease for a term of seven years, include:

Two Airbus A321-200 delivered to Raya Airways of Malaysia, which also currently operates three Boeing 767-200 aircraft leased from CAM.

A Boeing 767-300 leased to Cargojet Airways of Mississauga, Canada, bringing the total number of their CAM-leased Boeing 767 freighters to four.

A Boeing 767-300 leased to new customer Georgian Airlines LLC of Tbilisi, Georgia.

A Boeing 767-300 leased to Amerijet International Airlines of Miami, Florida. CAM now leases a total of ten Boeing 767-300 freighters to Amerijet.

A Boeing 767-300 leased to SkyTaxi of Wroclaw, Poland. SkyTaxi also leases two Boeing 767-200 freighters from CAM.

"We delivered six aircraft to operators in five countries in one month, demonstrating the success of our globalization strategy," said Paul Chase, chief commercial officer of ATSG. "The global demand for our medium-widebody converted freighter aircraft has remained strong due to the continued expansion of global express and e-commerce markets. We are meeting this demand by continuing to deliver 767 converted freighters while also introducing A321 and A330 freighters to the market in 2023 and 2024 respectively."

IAG Cargo reports half year revenues of €603million, up 8.5% on the same time in 2019

IAG Cargo recently unveiled its semi-automated Premium handling facility, with a cutting-edge temperature-controlled storage facility.

The implementation of targeted investments across the business has led to enhanced performance in comparison to pre-pandemic. 

The cargo division of International Airlines Group - IAG Cargo has reported its financial results for H1 2023 recently, which showed commercial revenues of €603 million for the period from January 1 to June 30 2023. That's up some 8.5% on the same period before the pandemic in 2019, although a decrease of 28.5% on last year's amount. 

IAG Cargo opened  New Premia, its new flagship handling facility at its London hub, in the first part of the year. The investment in excess of €100m is part of a revamp to its cargo facilities at London's Heathrow Airport. The state-of-the-art 10,000m2 semi-automated warehouse more than doubles IAG Cargo's handling capacity for premium shipments.  The facility features a Constant Climate Quality Centre (CCQC) specialising in pharmaceutical, life-science, and biotech product shipping. IAG Cargo continues to invest in its pharmaceutical product reinforcing its commitment to supporting a key industry.

David Shepherd, Chief Executive Officer of IAG Cargo, said: “While the operating environment has changed significantly in recent months, and the air cargo industry normalises following the pandemic, our primary efforts in the first half of the year have been dedicated to implementing essential transformation. This has included investing in our facilities, operations, and senior leadership team to ensure that we are in a strong position to adapt to the changing market. As well as opening our New Premia operation at Heathrow, we have focused on improving operational processes to make better use of our capacity.” 

IAG Cargo continued to reintroduce network coverage resuming services between London Beijing and Shanghai as well as increasing frequency to Hong Kong and Japan. H1 2023 saw substantial growth across North America, approaching pre-pandemic levels as IAG Cargo launched a new route between London and Cincinnati increasing its North American network to 28 destinations. 

David Shepherd continues: “We’ve been focused on how we can increase efficiency as a business whilst better serving both our customers and colleagues. We are already benefitting from the actions we are taking, all with the goal of cultivating a great place to work and building long-term customer loyalty. As a business we remain well positioned to serve the industry that keeps the world’s economy moving.”

IAG Cargo partners with Kuehne+Nagel to advance Sustainable Aviation Fuel (SAF)

 

Kuehne+Nagel is reducing its Scope 3* carbon footprint by part-funding IAG's purchase of six million litres of Sustainable Aviation Fuel (SAF)

The SAF is scheduled to be delivered during 2023 as part of IAG Cargo and Kuehne+Nagel’s commitments to decarbonising air cargo

The SAF will be produced from used cooking oil and food waste, and reduces CO2 emissions by at least 80 per cent compared to conventional jet fuel

 

IAG Cargo, the cargo division of International Airlines Group (IAG), will reduce cargo customers’ supply chain Scope 3* emissions by partnering with Kuehne+Nagel, who will part-fund IAG's purchase of six million litres of Sustainable Aviation Fuel (SAF) in 2023. The SAF, which will be certified by ISCC (International Sustainability & Carbon Certification) and produced from used cooking oil and food waste, will have at least 80% lower lifecycle emissions than conventional jet fuel and will reduce over 15,000 tonnes of CO2 on a lifecycle basis. 

IAG was the first European airline group to make a commitment that 10 per cent of its fuel needs would be fulfilled by SAF by 2030, and this purchase supports IAG’s acceleration towards this goal. IAG has committed $865m in future SAF investments and purchases to date, with agreements in place with a number of suppliers in the UK, US and Spain. 

David Shepherd, Chief Executive Officer at IAG Cargo said: “We are delighted to be partnering with Kuehne+Nagel once again to address Scope 3 CO2 emissions for their supply chain. We are committed to reducing our environmental impact and contributing to the wider sustainability goals of the aviation industry. This purchase is a key step in achieving these objectives and is a great example of how IAG can help its customers decarbonise.” 

IAG Cargo first partnered with Kuehne+Nagel in 2021 to power a charter chain of 16 flights from Stuttgart to Atlanta, and this latest deal builds on the long-standing partnership between Kuehne+Nagel and IAG Cargo.

Yngve Ruud, Member of the Management Board of Kuehne+Nagel, responsible for Air Logistics, commented: “To achieve genuine decarbonisation in our industry, sustainable aviation fuel (SAF) is currently the most effective solution, and we are dedicated to increasing its supply as part of our ambitious climate targets. Working closely with our suppliers and promoting the deployment of these fuels with reliable partners such as IAG Cargo is crucial to accomplishing our goals and enabling our like-minded customers to transport their products in a more sustainable manner.”

Air France-KLM Martinair Cargo's Chicago warehouse undergoes a transformation.............

On June 28th, Air France-KLM Martinair Cargo - AFKLMP unveiled its newly configured, renovated warehouse based at Chicago O’Hare International Airport (ORD).

To mark the occasion, let’s take a closer look at this new facility and how it plays into the Group’s larger strategy.

What’s new at the O’Hare airport warehouse?

This €5 million investment – initiated two years ago – brought three major changes to the site’s infrastructure and resources.

First, AFKLMP Cargo increased the warehouse’s capacity by 40%. This means more storage space, fluidity, and efficiency for customers. The expansion also includes 60% more plugs for ACTS containers, which makes possible to handle larger volumes of specialized cargo, including from other airlines.

Secondly, the company updated its operational and safety systems to ensure total compliance and maximum reliability.

And lastly, as part of its commitment to sustainability, AFKLMP Cargo also integrated energy-efficient solutions such as LED lighting and electric forklifts. This comes on top of other sustainability measures already underway, such as incorporating sustainable aviation fuel and renewing the fleet with more efficient aircraft.