ISTAT Jetrader - Winter 2020 - 21

Many airlines across the world do not have any revenue streams. Even as
many were well-capitalized before the pandemic, their free capital is being consumed
very quickly. This is so significantly different from anything we've seen in the past.
normalized levels by 2023 or 2024. However, that normalized
level will be haircut by at least 10-20% compared with
pre-pandemic levels. And that tells us there's going to be a
significant lack of airfreight capacity compared to airfreight
demand when you consider my example of the 50/50 split on
freighters and passenger bellies. That's what we're seeing
at the moment, and I think it's something that's going to be
sustained for the next few years, unless a vaccine can be
widely distributed earlier than expected. It's certainly a very
complex environment.
The other drivers here are, as this is having such a
profound impact on the entire aviation sector, many airlines
across the world do not have any revenue streams. Even as
many were well-capitalized before the pandemic, their free
capital is being consumed very quickly. That has an impact
on the airlines themselves; it has an impact on their relations

with lenders and financiers; it has an impact on the OEMs,
first- and second-tier suppliers; and on and on it goes. This is
so significantly different from anything that we've seen in the
past, and it's right at the heart of the global economy.
The pandemic has had multiple impacts on our business.
The Atlas, Southern and Polar businesses are heavily
diversified regarding the fleet types that we operate, the
customer base that we have and the services that we provide.
We are deeply involved in the express part of the industry.
We serve DHL Express, FedEx, UPS and SF Express - and
each has experienced significant demand for their services,
driven by the increased consumption and by distribution
channels such as e-commerce. E-commerce demand has
grown significantly and that's benefiting other customers that
we have as well, including the combination carriers and the
e-commerce platforms themselves like Amazon or Alibaba.

Jetrader

* WINTER 2020 * 2 1
ISTAT Jetrader - Winter 2020

Table of Contents for the Digital Edition of ISTAT Jetrader - Winter 2020
