2025-03-31
Air Cargo Demand Increased by 11.3% Last Year… International Transport Up 12%
New Cargo Aircraft Orders and Passenger-to-Freighter Conversions on the Rise
“Expanding New Orders and Price Negotiations… Targeting Operating Profit This Year”
[Edaily Marketin Reporter Kwon So-hyun] Aircraft parts manufacturer Astron (067390) is focusing on the dedicated cargo aircraft market amid the growth of air logistics. The company expects an increase in related parts demand as new cargo aircraft orders rise and passenger-to-freighter (P2F) conversion demand expands.
According to the 2024 Global Air Cargo Performance Report released by the International Air Transport Association (IATA) on the 31st, global air cargo demand increased by 11.3% in terms of cargo ton-kilometers (CTK) last year. International transport demand rose by 12.2%. In terms of available cargo ton-kilometers (ASTK), the total capacity increased by 7.4%, with international transport capacity growing by 9.6%.
As a result, expectations are rising for continued growth in new cargo aircraft orders as well as maintenance, repair, and overhaul (MRO) demand.
The fluctuations in the air transport market directly impact ASTK’s performance. The company manufactures critical structural components for the Boeing 737, such as bulkheads (key fuselage barrier structures), Section 48 (the rear fuselage), U/L decks (primary fuselage frame structures), as well as stringers (aircraft frame reinforcement parts). Additionally, ASTK produces fuselage components for the Embraer E-Jet and cargo aircraft doors (MDCD) and related structures needed for passenger-to-freighter conversions.
Global issues, such as Boeing’s production disruptions for the B737, can affect cargo aircraft supply schedules and contribute to revenue volatility for ASTK. However, the continuous growth of the air cargo market is expected to enhance the company’s business stability.
An ASTK representative stated, “With the growth of the global cargo aircraft market and anticipated supply shortages, we expect expansion in the aircraft inventory sector. Moving forward, we aim to achieve an operating profit this year through increased new orders and renegotiation of supply prices.”