Air France 2008 Annual Report Download - page 39

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39
The Group is reinforcing its
position as the European and global
leader in air freight
Air France-KLM Cargo is the European and global leader
in air freight (excluding integrators) with an operational
fleet of 13 exclusively cargo aircraft. Contributing 12% of
total revenues, the cargo business is the Group’s second
activity.
Higher costs and increased competition
The economic slowdown in the United States, the
increase in the oil price and dollar weakness all held back
the cargo activity despite continued strong demand (+4%)
driven by the development of the Chinese market.
Competition with shipping has increased with the
efficiency of large tonnage ships supported by that of port
facilities enabling sea freight to broaden its offer and lower
prices. New players have emerged both in Asia and the
Middle East, again adding to competition.
2007 was a record year with orders placed for 151 cargo
aircraft, the global cargo fleet entering a renewal cycle
accelerated by the increase in the jet fuel price. Despite
likely overcapacity, annual air freight growth should
average close to 4.8% through to 2011.
In this challenging environment, Air France-KLM Cargo
maintained its market share in terms of traffic (29.5%
compared with 29.6% in 2006) amongst AEA (Association
of European Airlines) airlines and globally (7% as in 2006),
thanks to its integrated organization, its network, an
attractive offer and measures to adapt the business.
During the financial year the Group carried more than 1.5
million tons of cargo, of which 50% in the holds of
passenger aircraft and 50% in 13 dedicated cargo aircraft
to 350 destinations in 175 countries.
1. 5
million
tons carried