Air cargo markets saw 2016 second half revival, HKG held on to its top position - despite new challengers
- News Feed
- Thursday, 27 April 2017
AIR cargo markets experienced a revival in the second half of 2016, according to preliminary reports from Airports Council International (ACI).
Despite the looming uncertainty regarding trade policies in the face of protectionist sentiments, heightened business confidence through inventory build-ups and increased export orders remained apparent for the short term.
The worldís largest air cargo hub continued to be Hong Kong (HKG, +3.5 per cent), followed by Memphis (MEM, +0.7 per cent) and PVG (+five per cent).
Doha (DOH), moved up from 20 to 16 with a jump of 20.8 per cent in air cargo volumes in 2016.
Representing as much as 44 per cent of global traffic volumes, the worldís 20 busiest airports for air cargo throughput grew 3.3 per cent year-over-year.
Overall traffic at the worldís 20 busiest air passenger hubs (based on reports from 1,179 airports world wide) grew 4.7 per cent for the year. With more than 1.4 billion passengers passing through those airports in 2016, the group represented 18 per cent of global passenger traffic.
The top position continued to belong to Atlanta-Hartsfield-Jackson (ATL), with more than 104 million passengers and growing 2.6 per cent in 2016.
Many pundits anticipated that ATL would be overtaken by Beijing (PEK), but Chinaís busiest airport has seen subdued growth thanks to continuing capacity constraints. Conversely, ATL experienced above average growth levels spurred by aircraft fleet expansion in 2015 by Delta Air Lines, its major operator.
Dubai (DXB) remained in third position. As a major connection point for long-haul international flights, that airport is also the worldís busiest in terms of international passengers ahead of London-Heathrow (LHR). Total passenger traffic at DXB grew 7.2 per cent in 2016.
Burgeoning Pacific market
Los Angeles (LAX) moved from seventh to fourth position, solidifying its position as one of the fastest-growing hubs in 2016. A strengthened American economy and competitive airfares fuelled air transport demand during a record breaking travel season. In addition to buoyant market conditions, many airlines expanded capacity and LAX passenger traffic increased eight per cent compared to the previous year. International traffic continued to be a growing portion of passenger traffic, expanding by 10.6 per cent in 2016.
Consistent with this phenomenon, Asian airlines continued to make important inroads in the North American market on key international and trans-Pacific segments across airport pairs, particularly between North America and China. One major Chinese airport (serving trans-Pacific and other international routes) was Shanghai Pudong (PVG), which grew 9.8 per cent in 2016 to over 66 million passengers. That Chinese hub also serves the catchment area of Shanghai, one of the most populous city markets in the world and a major centre for trade and business. PVG, which represented more than 60 per cent of Shanghaiís passenger traffic in 2016, and Hongqiao (SHA), the cityís sister airport, topped the 100 million passenger mark in combined passenger traffic. Shanghai therefore joined the ranks of the worldís busiest city markets in 2016, in the company of London, New York, Tokyo and Atlanta.
East Asia
Seoul Incheon (ICN), a major Korean hub in East Asia with significant international traffic experienced double digit growth of 17.1 per cent year-over-year in passenger traffic in 2016. Even after factoring in the effect of the outbreak of the Middle East respiratory syndrome, which depressed the passenger figures during the summer of 2015, ICN would still have achieved an estimated growth rate of at least 10 per cent.
The continued growth of low cost carriers on key segments and the start of A380 flights on long-haul routes paved the way for traffic expansion. Also, demand for Korean and Japanese international routes added impetus at ICN and other Korean airports. That demand helped Tokyo Haneda (HND), the worldís fifth busiest airport and Japanís largest, which grew 5.5 per cent in total passenger traffic for 2016.
Other key markets
Amsterdam-Schiphol (AMS), a major European hub, grew 9.2 per cent in 2016. While AMS gained traffic due to the substitution effect from terrorism activity at sister hubs, the airport remained strategic for connections on continental and intercontinental traffic. The airport currently provides over 320 flight connections to airports in some 98 countries.
Denver (DEN) also continued to increase traffic at a high rate, growing almost eight per cent in 2016.
Finally, there are two airports outside the top 20 that are growing fast: Delhi (DEL) and Doha (DOH), the worldís 21st and 50th-busiest airports. Both airports achieved growth of over 20 per cent. While almost three quarters of DELís traffic is domestic, DOH is a rapidly growing hub in the Middle East with almost all of its traffic international. The dynamic between Indian aviation, which is poised to be one of the largest aviation markets over the long-term, and the Middle Eastern hubs as major points of connectivity, will be important in the years to come.
Aircraft movements
As well as the worldís busiest airport, ATL (+1.8 per cent) was the worldís Number 1 for aircraft movements, ahead of Chicago-OíHare (ORD), which experienced a decline of -0.9 per cent and LAX, which experienced an increase of 6.3 per cent. Both AMS and PVG moved up the ranks, posting growth rates of 6.6 and 6.8 per cent respectively. The top 20 airports achieved growth of 1.8 per cent year-over-year compared to 2015.
ìThe aviation industry is constantly changing, adapting and innovating,î said Angela Gittens, director general, ACI World.
ìGlobal aviation markets remain dynamic in the face of economic uncertainty and geopolitical risks that persist on many fronts. Connecting people and places still remains paramount to the aviation sector in spite of the looming threat to market liberalisation in major Western economies. We see passenger traffic continuing to grow at many of the major hubs. The combined use of larger aircraft, increased load factors by airlines and more efficient use of infrastructure continue to be an important trend across the industry. From a global perspective, this is a testament to the efficiency gains that have been achieved in the sector.î
Global summary: Preliminary year-over-year growth for 2016, compared to 2015
Total passengers: +5.6%
Total international passengers: +6.6%
Total cargo (includes mail): +3.3%
Total international freight: +4.3%
Total aircraft movements: +2.3%
* All data here is preliminary and a final report will be published later this year.
