COVID-19 supplies keep air cargo operators afloat
The pandemic may have severely affected passenger airlines since the start of last year, but air cargo and freight operators have reported buoyant activity due to the increase in air transport of essential commodities related to the economy. COVID-19.
Blue Dart Express, which includes its subsidiary Blue Dart Aviation, reported a turnaround in FY21, posting net profit of ₹ 96.3 crore for the full year against a net loss of ₹ 38.3 crore in the year 20.
This is despite the absorption of a special ex gratia COVID-19 of ₹ 34.2 crore paid to employees in September 2020 and the accelerated depreciation of computer servers in the amount of ₹ 24 crore.
The improvement in margin was supported by better realization and better profitability during the year. Increased contact minus delivery also helped.
“All of our facilities were operational every day during the pandemic, providing PPE kits, ventilators, vaccines, oxygen concentrators, pharmaceutical and medical equipment,” said Managing Director Balfour Manuel. “We are cautiously optimistic about the new exercise against the background of the current Wave II and the impending Wave III of the pandemic,” he added. SpiceJet, which operates air cargo subsidiary SpiceExpress, is also reporting encouraging performance as its fleet is increasingly deployed to transport essential items and medical supplies to cope with the pandemic.
During the third quarter, revenue from freight operations almost quintupled year over year and the fleet grew to 19 freighters, including five jumbo jets.
Given the high potential of this segment, IndiGo recently announced its intention to introduce four Airbus A-321 cargo planes by 2022.
“The force of the cargo volumes cushioned part of the impact for the [airline] industry. The second wave will limit the internal capacity of domestic and international passengers, which will be positive for freight yields and cargo operators, ”CAPA said in a report.
“IndiGo will eventually form an alliance with a global integrator [for freight] and SpiceJet could separate from its cargo division and use it as a vehicle to raise capital, ”CAPA said.