Machinery manufacturing

affected overall demand considerably. Furthermore, due to the development of the pandemic in Germany and the long retention of protection measures, many of the large trade fairs and events which are an important component of air travel demand did not take place. Domestic German travel was also affected by additional factors such as the market exit of one airline which has led to higher prices and lower frequencies on key routes. During the pandemic, passenger car travel became the transport means of choice particularly since the advantage in terms of time has dwindled due to the lower number of flights available. The location of the new airport in Berlin means that flying takes relatively longer than from Tegel Airport, thus reducing the advantage of flying over travelling by train or car in terms of time. The problems on individual peak days in the area of security controls and ground handling at the new airport are broadly covered in the media, increasing the appeal of car, bus and train travel in the eyes of the customers (particularly car travel). The retention of the obligation to wear a mask is another factor fuelling this development. Other possible reasons such as trends in purchasing power and overall economic development and the impact of the war in Ukraine have a similar effect on the other countries in Europe and cannot explain the divergent development.

The strong growth momentum in air freight transport has tailed off. In the first quarter, air freight loaded and unloaded was 0.7 percent above the 2021 level and 8.4 percent higher than in the same period in 2019, but figures for March 2022 were down on March 2021. The slowdown of the global economy, inflation and increasing supply chain problems are also putting the lid on air freight demand. Logistics to Asia for German and European companies in particular is characterised by an increased use of capacities due to the longer routes, additional costs and lower returns. Profits are still good on account of the low capacities on the market.

In sum, the trend in passenger air travel in Germany needs to be observed closely as it may well simply be lagging behind other countries and will soon catch up. Air freight transport has reached relative saturation, with moderate levels of economic growth particularly in Asia having a tangible effect. The listed corporations Lufthansa Group and Fraport have nonetheless adapted well to the developments and are optimistic about the further course of the year.

Contact: Norbert Lübben / Phone: +49 30 5200 771 30 / Mail: Norbert.Luebben@bdl.aero

Machinery manufacturing Production

Sentiment in companies has stabilised somewhat following the slump in March, according to the latest figures. Companies view their current business situation as positive buoyed by order books at a record high level with an average reach of over eleven months. Persisting material shortages mean that companies cannot work off their orders as usual. Hardest to come by are electronics components and fabricated metal products. As of early April, 84 percent of companies reported noticeable or severe shortages in the supply of electronic components and 69 percent reported shortages in the supply of metals and fabricated metal products. According to preliminary Federal Statistical Office figures, production in March was down by 4.1 percent in real terms. The persistent shortages in supplies mean that many companies now have a much higher stock of unfinished end products in their production cycle. What’s more, there are not only shortages in materials but also in transport capacities. On top of a shortage of containers, packaging material, pallets and, on account of staff off with Covid, workers