Aviation
LOWER OIL PRICES A MIXED BLESSING FOR AIR FREIGHT
February 3, 2015

Lower oil prices are likely to prove a mixed blessing for the global air cargo industry, with the benefits of cheaper fuel costs generally being outweighed by the negative impact of other repercussions, said Oliver Evans, chairman of TIACA (The International Air Cargo Association), at a January press briefing in London.

“The plus side of the decline in oil prices (for air cargo) is very clear – one of the key cost elements of our industry is going down and that is good news for operators,” said Evans.

However, he continued, that trend also had “all kinds of implications in terms of opportunities and threats for different business models.” He pointed out that fuel surcharges had become a key element of earnings for many air cargo service providers.

“The impact of cheaper fuel will vary from company to company and between groups and areas. Different companies will react differently to that challenge and other players will have to decide how they respond to that,” stated Evans.

 

– Phil Hastings