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November 10, 2020

Freight ― the vital element of the new model for air transport business

Airport of the Future 2020
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Dear colleagues!
Even before the pandemic, carrying freight generated three-fold as much revenue for airlines as first-class passengers, and almost as much as business passengers. According to the data provided by Strategic Aviation Solution International, for the last decade, first class revenues accounted for 4% of the industry’s entire revenues, business class travel brought 16% — whilst the share of freight was 12%.

Restrictions caused by the COVID-19 pandemic have made freight transportation the only means of survival for many airlines, whilst passenger traffic plunged or passenger operations came to a standstill altogether. A visible portion of passenger fleet was temporarily converted into semi-freight versions by having the seats removed from the cabins, or even piling boxing right on the seats. There’s even a name for these converted airliners — preighters, like “passenger freighter”.

It is evident, that this is a stop-gap measure, while traffic is slowly recovering. But it is no less evident, that in the new reality freight has become a much more significant segment for airlines and from “auxiliary revenues” they are now becoming one of the main cash generators. In addition, according to IATA pandemic has spurred an uptick in e-commerce. In the US, for instance, the share of e-commerce increased from 15% to 35% during three months, other countries are also seeing a visible increase, and 80% of all trans-border e-commerce in B2C sector is shipped by air.
Airport of the Future 2020
Elena Konkina,
Moscow Cargo
On November 11, the 11th international conference Airports of the Future goes online. Freight will be one of the highlights of the conference agenda. Elena Konkina, deputy director and CCO of Moscow Cargo will deliver a presentation “Development of Freight Market — a Long-Term Trend or a Short-Term Reaction?”, in which she will touch on following issues:
What effect the pandemic is having on freight market, in particular — what changes are observed in the freight traffic structure (import, export, transfer) in domestic and international segments?
What immediate response measures have helped market players to set off decrease of freight traffic volumes due to dramatic shrinking of passenger route networks and schedules?
Which categories of freight have exceeded the pre-pandemic volume levels?
When — according to expert estimates — can we expect the uplifting of restrictions on global air travel, and how will the industry look in the post-pandemic configuration?
Check out the conference agenda.
Register now
The international conference Airport of the Future held by ATO Events for 11th year in a row, this time is going completely online. This format is perfect for gathering expert community from around the globe to share the best practices of steering business through the ongoing unprecedented situation.

You may also forward this invitation to take part in the forum to your partners, strengthening your relations in these turbulent times. Online conferences organized by ATO Events have built a reputation of an efficient business communication tool. Our own dedicated internet platform supports broadcasting in two languages simultaneously and provides options for live interactions with the speakers and other delegates. It’s also possible to pause and rewind, and the entire video recording will be available to participants for two weeks after the event. So it is possible to choose the most convenient schedule for participation — watch the most relevant presentations in real time and ask questions to the speakers — and leave the rest for later.
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Participation: +7 495 108-51-43
Valentin Ivanov
ATO Events