According to Michael Steen, the CEO of Atlas Air Worldwide Holdings Inc., the global supply of full-freighter aircraft is gradually tightening. During an interview for Bloomberg TV’s Daybreak program on March 13, Steen highlighted that out of the 650 all-freighter aircraft worldwide, approximately 125 are nearing retirement, leading to supply constraints.
Despite this, Steen mentioned that Atlas Air, currently holding about 10% of the global freighter fleet, is in a strong position. The company had recently received eight new wide-body freighters.
Steen also noted a significant rebound in global airfreight demand after a tumultuous 2023. Year-on-year, demand has increased by 20%, surpassing 2019 levels by 4%. He pointed out the cyclical nature of the airfreight market, typically characterized by three-year upturns followed by downturns lasting 12-18 months. Steen indicated that the industry is transitioning out of a downturn phase, with current demand outpacing supply.
E-commerce emerged as a bright spot in the market, constituting 18% of global retail sales and growing at a rate of 8-9% annually. Atlas Air observed a notable shift from business-to-business to business-to-consumer demand.
Steen also highlighted the potential for increased demand for airfreight due to the recent Red Sea shipping crisis. With global shipping capacity reduced by around 30% following the Suez Canal blockade, leading to depleted inventories, there may be a surge in airfreight demand to meet supply chain needs.
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