IATA: Strong cargo yields likely to normalise once passenger capacity recovers
IATA chief economist Brian Pearce, speaking at CAPA Live January 2021, stated (13-Jan-2021) the cargo side of air travel is "doing very well", with "exceptional yields" resulting from the shortage of capacity associated with the grounding of passenger aircraft, which typically carry half of air cargo volumes. Mr Pearce noted: "We're seeing network decisions being based now not on high yield business traffic, but on cargo". He said strong cargo revenues are likely to continue in 2021, "however over the longer term this isn't likely to last", as "once capacity comes back on the passenger side those yields are likely to normalise". Mr Pearce emphasised that "the reality is that cargo is just not a big enough business to offset the near catastrophic fall in passenger revenues".