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IATA Report
Air Cargo demand down 3.3% in January 2020
IATA report reveals the adverse impact the emergence and spread of COVID-19 is having on the international air cargo industry T he International Air Transport Association (IATA) newly released data for global air freight markets showing that demand, measured in cargo tonne kilometers (CTKs), decreased by 3.3% in January 2020, compared to the same period in 2019.
”January marked the tenth consecutive month of year-on-year declines in cargo volumes. The air cargo industry started the year on a weak footing. There was optimism that an easing of US-China trade tensions would give the sector a boost in 2020.
However, that has been overtaken by the COVID-19 outbreak, which has severely disrupted global supply chains, although it did not have a major impact on January’s cargo performance. Tough times are ahead. The course of future events is unclear, but this is a sector that has proven its resilience time and again,” said Alexandre de Juniac, IATA’s Director General and CEO.
Cargo capacity, measured in available cargo tonne kilometers (ACTKs), rose by 0.9% year-on-year in January 2020. Capacity growth has now outstripped demand growth for 21 consecutive months. It is unlikely that the COVID-19 outbreak had very much to do with January’s weak performance. Lunar New Year in 2020 was earlier than in 2019. This skewed 2020 numbers towards weakness as many Chinese manufacturers would be closed for the holiday period. February performance will give a better picture of how COVID-19 is impacting global air cargo. Regional Performance Airlines in Asia-Pacific and Europe suffered sharp declines in year-on-year growth in total air cargo volumes in January 2020, while North American and Middle East carriers experienced a more moderate decline. Latin America and Africa were the only regions to record growth in air freight demand compared to January 2019.
Asia-Pacific airlines saw demand for air cargo contract by 5.9% in January 2020, compared to the year-earlier period. This was the sharpest drop in freight demand of any region for the month. Capacity growth was flat. Seasonally-adjusted cargo demand rose slightly however, following the thawing of US-China trade relations. The impact from COVID-19 is expected to affect February’s performance. North American airlines saw demand decrease by 1.3% in January 2020, compared to the same period a year earlier. Capacity increased by 3.4%. Seasonallyadjusted cargo demand rose slightly however, amid a more supportive operating environment and following the thawing of US-China trade relations.
European airlines posted a 3.7% decrease in cargo demand in January 2020 compared to the same period a year earlier – more than double the 1.3%% drop in year-on-year demand in December. Seasonally-adjusted demand also dropped sharply, disrupting the positive trend that started mid-2019. Capacity decreased by 3.0% year-on-year. Middle Eastern airlines’ cargo volumes decreased 1.4% in January 2020 compared to the year-ago period. Capacity increased by 2.9%. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally-adjusted freight volumes ticked down in January, but a modest upwards trend has been sustained. However, given the Middle East’s position connecting trade between China and the rest of the world, the region’s carriers have significant exposure to the impact of COVID-19 in the period ahead.
Latin American airlines experienced an increase in freight demand in January 2020 of 1.4% compared to January 2019 – reversing the 2.5% decrease in December. Seasonally-adjusted freight volumes in the region also ticked upwards, underpinned by new route connections, which is a positive development for the region’s carriers. Capacity increased by 2.4% year-on-year. African carriers posted the fastest growth of any region for the 11th consecutive month in January 2020, with an increase in demand of 6.8% compared to the same period a year earlier. Growth on the smaller Africa-Asia trade lanes (up 12.4% in 2019) contributed to the positive performance. Capacity grew 5.9% year-on-year. n
Agthia Group net revenues surpass US$ 545mn mark
The Abu Dhabi headquartered F&B company continues to gain positive top-line momentum in food segment, 5-gallon HOD business and international operations
Eng. Dhafer Ayed Al Ahbabi, Chairman, Agthia Group. A gthia Group, one of the region’s leading food and beverages companies, recently announced preliminary and unaudited results for the fiscal year ending 31 December 2019.
The Group posted US$ 37.3mn in net profit, as well as net revenues of US$ 545mn (AED 2.04bn). Agthia grew its revenues by 2% year-on-year on geographic expansion and product category diversification.
The consumer-business contribution to Agthia’s top-line increased to 56 percent versus 54 percent from the previous year. Agthia’s 5-gallon Home and Office Delivery (HOD) business in the UAE, Food segment along with international operations in the Kingdom of Saudi Arabia (KSA) and Kuwait drove the consumer business’s top-line growth.
On the local front, the company’s water portfolio consisting of UAE’s popular Al Ain Water, as well as Al Bayan, and Alpin retained market leadership with volume and value shares at 29 and 27 percent, respectively.
With regard to Agthia’s Agri-business, composed of Grand Mills Flour and Agrivita Animal Feed, the Flour business outperformed despite pulled out subsidy environment, as volumes recorded strong growth in export sales, retail penetration specifically in the Northern Emirates, as well as wheat trading.
“Agthia’s 2019 financial results are a testament to the company’s agility in the ability to maintain leading market share and grow revenues against headwinds. This is underscored by Agthia’s resilience and commitment to uphold and protect shareholder value, as well as our unwavering alignment to the UAE’s economic diversification agenda,”
commented Eng. Dhafer Ayed Al Ahbabi, Chairman, Agthia.
“Our positive revenue growth momentum has been led by diversification of our product portfolio, as well as increasing our geographical footprint in the face of unfavorable external factors. Agthia continues to demonstrate dominance in the UAE when it comes to the water segment despite aggressive competitive activity, price promotions, and changing consumer habits. Our success is also supported by the flour business beating the zero-subsidy competitive environment along with the vigorous performance in the food segment and international markets,” remarked Eng. Tariq Ahmed Al Wahedi, CEO, Agthia Group.
Agthia Group’s total assets stood at US$ 840mn (AED 3.1bn) as of 31 December 2019, increasing marginally compared to the same time last year. n
Meanwhile, the Agthia Group announced the launch of Al Ain Plant Bottle, the region’s first plant-based water bottle, at a press conference on the sidelines of Gulfood 2020 during UAE Innovation Month, in the presence of HE Dr Thani Al Zeyoudi, UAE Minister of Climate Change and Environment.
An MoU was also signed between Agthia and Veolia, a global leader in optimized resource management, to launch a PET water bottles collection initiative in the UAE, which includes the use of digital solutions, and various awareness programmes, along with incentive schemes and rewards... The packaging of the new Al Ain Plant Bottle is environmentally friendly and made of 100% plant-based sources, including the cap. Furthermore, the water bottle serves growing consumer move toward sustainability as it is biodegradable and compostable, within 80 days.
The revolutionary innovation is set to improve the environmental footprint from a CO2 perspective. It uses plant sources and converts them into a durable 100% plantbased resin, which is then used to create the Al Ain Plant Bottle.
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