South America Air Cargo Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Type (Air Mail and Air Freight), Service (Express and Regular), and End User (Retail, Pharmaceutical & Healthcare, Food & Beverage, Consumer Electronics, Automotive, and Others)

Express Segment is expected to be the fastest growing during the forecast period for SAM Air Cargo Market.

According to a new market research study on “SAM Air Cargo Market to 2028 - COVID-19 Impact and Analysis and Forecast by: Type, Services, and End-user,” is expected to reach US$ 9.58 billion by 2028 from US$ 6.48 billion in 2021. The market is estimated to grow at a CAGR of 5.7% from 2021 to 2028. The report provides trends prevailing in the SAM air cargo market along with the drivers and restraints pertaining to the market growth. Rapid adoption of e-commerce platforms is the major factor driving the growth of the SAM air cargo market. However, issues associated with the market ambiguity and intricacies of temperature-sensitive cargo hinder the growth of SAM air cargo market.

The SAM air cargo market is segmented into type, services, End-user, and country. Based on type, the market is segmented into air mail and air freight. The air freight segment dominated the market in the year 2020 and is also expected to be the fastest growing during forecast period. Based on services, the market is segmented into express and regular. The regular segment dominated the market in year 2020 and express segment is expected to be the fastest growing during the forecast period. Based on end- user, the market is segmented into retail, pharmaceutical and healthcare, food and beverage, consumer electronics, automotive, and others. The others segment dominated the market in year 2020 and pharmaceutical and healthcare segment is expected to be the fastest growing during the forecast period. Based on country, the market has been segmented into Brazil and Argentina.

Air cargo demand in South America remains relatively less than the other regions, owing to challenging operating environments. The global aviation industry has been adversely affected by the pandemic, but South America (SAM) has been hard hit. In SAM, cargo demand remains subdued, with international CTKs down 22.2% year-on-year. The region’s slow cargo recovery seems to be impacted more by a severe weakness in GDP and trade than by insufficient cargo capacity. Indeed, Latin America’s international CLF was below its maximum in September and also one of the weakest among the regions. As per the data by IATA, SAM carriers witnessed a decline of 20.5% in February in international cargo volumes compared to the 2019 period when demand was down the 17.5% on 2019 levels in January. Weakness within the South America markets continued to outweigh the full recovery in North-Central America routes witnessing increase of 10% compared to February 2019 levels. Hence, the pandemic has slightly impacted the Air Cargo Market in the region.

Cargolux; Cathay Pacific Airways Limited; DHL International GmbH (Deutsche Post DHL Group); FedEx Corporation; and United Parcel Service of America, Inc. are among the leading companies in the SAM air cargo market. The companies are focused on adopting organic growth strategies such as product launches and expansions to sustain their position in the dynamic market. For instance, in 2020, Cargolux launched a direct flight on the Shenzhen-Budapest route. The Boeing 747-400F aircraft landed at Budapest Airport's new logistics base, Cargo City on September 18. The Luxembourg-based cargo airline will operate flights between the two cities once a week

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