Latest market updates - Air

Logistics never stands still! To identify risks at an early stage and make use of opportunities at the right time, you must always know how the transport market is developing. In doing so, it is essential to distinguish important from unimportant information and to draw the right conclusions.

Every day, our experts analyze huge amounts of data from the Transporeon platforms and combine them with years of experience in consulting and supporting customers in transport logistics. With these latest market updates, we provide you with daily key figures on the most relevant developments including chart and interpretation at a glance!

EBIT Margins

Key observations:

  • Sharp decline of revenue in Q2 but persisting fixed costs of airlines led to devastating EBIT margins. Variable and operating costs have been reduced to a minimum
  • In Q2 2019, airlines in Asia Pacific region reported an EBIT margin of 0.9% but achieved a comparably “good” margin (-54%) in Q2 2020
  • Because Covid-19 was officially well under control in Q2 in Asia Pacific, demand quickly picked up in this region whereas aircrafts were grounded in other world regions

Radical cuts in costs did not offset lack of passenger revenue: overwhelming negative EBIT margins

Quarter 2 Results of Major Airlines

Key observations:

  • Q2 was characterized by worldwide slump of passenger demand and drastic revenue losses
  • Cargo division was the only silver lining for most airlines. Charter flights booming in international trade, resulting in massive revenue increases. Small carriers benefiting from demand situation and good rate levels
  • Asia-Pacific based airlines benefitted from manufacturing region of PPE and electronics which were high in demand in Q2
  • North America: The passenger-focused airlines United, American, and Delta each had a daily cash burn of >40mio USD/day in Q2 and are expected to lay off thousands of employees in fall 2020

Passenger airlines lost business model in Q2
Cargo airlines are the winners of the crisis