KBRA Releases Research – Coronavirus (COVID-19): Air Cargo: A Bright Spot in a Dark Sky

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases research on air cargo market trends and the global freighter aircraft fleet against the backdrop of the coronavirus (COVID-19) pandemic.

The air cargo market is now playing a critical role as demand for essential consumer goods and medical equipment continue to surge, in addition to the transportation of food and products purchased in support of social distancing policies. Due to the grounding of passenger aircraft, which has historically accounted for 50% of cargo capacity, dedicated freighter utilization rates have reached record highs. However, a demand shortfall due to significantly reduced capacity presents opportunity for passenger airlines to utilize their aircraft to help meet demand.

The report highlights:

  • Our current views on air cargo market trends and the global freighter aircraft fleet.
  • KBRA’s forward-looking estimates on cargo aircraft valuations and depreciation curves due to the potential temporary impact of COVID-19 on cargo traffic.
  • The current market for both wide-body and narrow-body freighter aircraft as well as their operators.
  • The rising demand for cargo lift and how it has helped passenger aircraft utilization for some carriers; although the overall accretion for revenue is small (yet helpful) and probably not long-lasting once the market rebounds.
  • How the rapid growth of e-commerce has driven demand for smaller freighters.
  • Financing options for freighter aircraft.

Click here to view the report.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA. Kroll Bond Rating Agency Europe Limited is located at 6-8 College Green, Dublin 2, Ireland.

Contacts

Analytical

Thomas Moore, Senior Analyst
+1 (646) 731-3375
tmoore@kbra.com

Boris Alishayev, Senior Director
+1 (646) 731-2484
balishayev@kbra.com

Danise Chui, Managing Director
+1 (646) 731-2406
dchui@kbra.com

Marjan Riggi, Senior Managing Director
+1 (646) 731-2354
mriggi@kbra.com

Business Development

Nish Kumar, Senior Director
+1 (646) 731-3372
nkumar@kbra.com

Contacts

Analytical

Thomas Moore, Senior Analyst
+1 (646) 731-3375
tmoore@kbra.com

Boris Alishayev, Senior Director
+1 (646) 731-2484
balishayev@kbra.com

Danise Chui, Managing Director
+1 (646) 731-2406
dchui@kbra.com

Marjan Riggi, Senior Managing Director
+1 (646) 731-2354
mriggi@kbra.com

Business Development

Nish Kumar, Senior Director
+1 (646) 731-3372
nkumar@kbra.com