Fuelling growth: Declines in oil prices over the past five years have boosted industry profit

The Air Freight Services industry transports time-sensitive and valuable goods, such as computer equipment, pharmaceuticals and perishable foods, within Australia and internationally. Most airfreight is transported in passenger aircraft's cargo holds, although many major airlines maintain a dedicated fleet of freight aircraft. Over the past five years, growth in international and domestic passenger flights has boosted freight capacity, putting downward pressure on freight rates. However, strong and rising outbound freight volumes have offset lower freight rates. Increased outbound freight volumes have been driven by a depreciating Australian dollar, supporting demand for a range of Australian exports, such as agricultural produce...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • A depreciating Australian dollar has led to a rise in export volumes, driving industry demand
  • Rises in air freight capacity have put pressure on airfreight rates, slowing revenue growth
  • More international flights should help airfreight capacity keep pace with higher demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Air Freight Services industry is in the growth phase of its life cycle. Industry value added, which measures an industry’s contribution to the overall economy, is forecast to grow at an annualised 1.8% over the 10 years through 2022-23. This is an underperformance compared with real GDP growth over the same period, which is projected to rise at an annualised 2.5%. The productivity gains made in aviation in the past five years have reduced the labour requirements of the industry. The use of larger, more fuel-efficient planes and growth in dedicated freight services has allowed industry enterprises to expand services while reducing employment. Man...purchase to read more.

    Additional Insights for the Air Freight Services Industry

    IBISWorld has determined the most important Key Success Factors for the Air Freight Services are:

  • Optimum capacity utilisation
  • Ability to pass on cost increases
  • Provision of superior service
  • IBISWorld analysts also discuss how external factors such as Total merchandise imports and exports and World price of crude oil in the Air Freight Services industry impact industry performance..

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    What's in this report

    What is the Air Freight Services Industry?

    The industry includes businesses that provide domestic and international airfreight services for freight and mail.

    Industry Products
  • International mail and parcel services
  • Domestic mail and parcel services
  • Inbound international freight services
  • Outbound international freight services
  • Domestic freight services
  • Industry Activities
  • International mail and parcel services
  • Domestic mail and parcel services
  • Inbound international freight services
  • Outbound international freight services
  • Domestic freight services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total merchandise imports and exports
  • World price of crude oil
  • Aircraft kilometres flown
  • Business confidence index
  • US dollars per Australian dollar

  • Current Performance
  • Industry structure
  • Airline capacity

    and profit

  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand and profitability
  • Competition and security
  • Table: Air Freight Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Air Freight Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Rail, Air and Sea Freight Forwarding
  • Aquaculture
  • Postal Services
  • Courier Pick-up and Delivery Services

  • Key Selling Industries
  • Aircraft Manufacturing and Repair Services
  • Airport Operations
  • Customs Agency Services
  • Non-Scheduled Air Transport
  • Petroleum Product Wholesaling

  • Products & Services
  • Inbound international freight services
  • Outbound international freight services
  • Domestic freight services
  • Domestic mail and parcel services
  • International mail and parcel services
  • Chart: Air Freight Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Freight forwarders
  • Courier companies
  • Postal companies
  • Chart: Major Market Segmentation for the Air Freight Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Air Freight Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Air Freight Services Industry

  • Industry Globalization
    Qantas Airways Limited, Singapore Airlines Ltd, Emirates Group, Cathay Pacific Airways Limited,
  • Table: Qantas Airways Limited - financial performance
  • Table: Singapore Airlines Ltd - financial performance
  • Table: Emirates Group - financial performance
  • Table: Cathay Pacific Airways Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Air Freight Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Air Freight Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bulk Freight
  • Goods transported unpacked in large quantities, predominately mineral and agricultural products.
  • Flag Carrier
  • A national transportation company that receives preferential treatment for the operation of international routes by its country of designation.
  • Hub
  • An airport that is a major base for an airline. Hubs are used as transfer points for passengers and freight flying multiple legs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Air Freight Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Air Freight Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Air Freight Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Air Freight Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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