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Strike Aviation 2023 Year Summary

The air cargo industry in 2023 has witnessed a year of mixed fortunes, as noted by Andrius Antanaitis of Strike Aviation. Despite facing reduced revenues, the increased tonnage lets the industry keep a positive outlook.

 

A notable trend in the industry has been the stabilization of prices, unlikely to revert to pre-pandemic levels, as evidenced by some global carriers’ decision to extend their summer season, leading to increased flights and capacity. Andrius suggests that this situation marks a critical phase for cargo companies, even as competitors look to implement cost-cutting measures. The sector’s growth is also mirrored in the aircraft market, with Oman announcing new orders and airlines searching for new markets and opportunities. Despite higher prices, demand remains robust, with full planes being a common sight. Passenger airlines, thriving and anticipating a record year, contribute to this available capacity. However, the future remains cautiously optimistic, shadowed by potential crises and geopolitical tensions. Factors like longer shipping lines, and natural events, exemplified by the recent Icelandic volcano, could disrupt routes and affect prices. Last year, the industry witnessed a 30-35% drop in revenue, and challenges like pilot shortages and engine issues might persist into 2024.

 

At Strike Aviation, we’ve seen stable performance in most operated countries, though not all airlines have fared equally due to varying capacities, says Andrius. Some stretched higher prices across the year, facing pushback towards the end. While we’ve achieved the desired tonnage and even exceeded it, pricing goals were not met, which is a market-driven factor. Container prices dropped post-pandemic, which contributed to the good result. There are now a few signals that shipping lines have longer routes, increasing the cargo time, which can influence the decision of companies choosing air freight over sea freight due to convenience.

 

For 2024, Andrius indicates that Strike Aviation is actively expanding its global presence, strengthening teams in key markets. Recent strides include welcoming a new team member in Amsterdam and developing plans to extend operations into Mexico. The company is also setting its sights on Asia, having already engaged in industry events in Singapore and planning further involvement in Hong Kong. Efforts to establish a stronger presence there include potential negotiations with a new carrier, marking the beginning of Strike Aviation’s active engagement in the region, with Hong Kong poised as a likely focal point. Although satisfied with our current reach in Europe and the US market, our commitment lies in strengthening and improving our operations in established regions to maintain growth and solidify our market position.

 

Andrius also highlights that at Strike Aviation, innovation is identified as one of the fundamental elements of our strategic direction. The company is diligently exploring cutting-edge technological solutions that promise to accelerate data processing and heighten efficiency. Enhanced internal communication within our global teams has yielded considerable improvements, fostering greater flexibility and significantly bolstering our European operations. Our aim is to smoothly incorporate these technological enhancements into our daily operations, thereby elevating our efficiency and solidifying our dedication to being at the forefront of innovative success in the aviation industry.

 

As the industry moves into the new year, Strike Aviation is poised to blend technological innovation with efficient operations, navigating the dynamic air cargo landscape with a commitment to continued growth and market leadership.

 

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Experts in
perishable goods

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