Air Freight Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: March 2024
ANZSIC OD5177Revenue
$4.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
7,019
Businesses
45
Wages
$XXX.Xm
Air Freight Services in Australia industry analysis
Airfreight transporters have faced a turbulent operating environment in recent years. While the COVID-19 pandemic largely grounded the wider aviation sector, the Air Freight Services industry soared above the clouds. Airfreight volumes transported by airlines dropped while international borders were closed, due to limited capacity in the cargo holds of passenger flights. However, global supply chain disruptions pushed airfreight prices to record levels, more than offsetting weaker tonnage volumes. As global supply chain disruptions eased and borders reopened, over the two years through 2023-24, airfreight prices have started to normalise, while volumes continue to be below pre-pandemic levels. Overall, industry revenue is expected to drop at an annualised 5.8% over the five years through 2023-24, to $4.6 billion. This includes an anticipated 24.6% crash in 2023-24, as airfreight prices fall back down to earth.
Trends and Insights
- Despite a strong performance during the COVID-19 pandemic, industry revenue has declined. Airfreight volumes remain below pre-pandemic levels, and prices have largely normalised.
- Outbound international airfreight volumes have plummeted in recent years. The economic downturn caused by the pandemic and inflationary pressures more recently have reduced the economic viability of overseas businesses importing time-sensitive agricultural products.
- Airfreight activity primarily occurs at international airports. Industry locations are represented by the volume of airfreight that is transported in and out of each airport.
- External competition is high for airfreight transporters. Alternative modes of freight transport, like water, road and rail, are often cheaper than airfreight.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 5.8 % over the past five years, to reach an estimated $4.6bn in 2024.
Trends and Insights
Industry margins have been buffeted by a series of shocks in airfreight and fuel prices
- Revenue for the Air Freight services industry surged over the three years through 2021-22, as soaring airfreight prices more than offset weakened airfreight volumes.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Recovering capacity on passenger flights will cause airfreight prices to fall
- Passenger airlines will continue influencing the industry's performance over the coming years, especially along international routes.
Biggest companies in the Air Freight Services in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Qantas | 1,463.0 | |
Singapore Airlines | 518.2 | |
Air New Zealand | 281.0 |
To view the market share and analysis for all 9 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including International mail services, Inbound international freight services and Outbound international freight services. International mail services is the largest segment of the Air Freight Services in Australia.
Trends and Insights
Thriving online shopping activity has lifted demand for inbound international freight services
- Inbound international freight services allow for imported goods to enter Australia by air. Commonly imported goods transported by the industry include high-value low-weight items, like electronics and pharmaceutical products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- International Airlines in Australia
- Domestic Airlines in Australia
- Non-Scheduled Air Transport in Australia
- Rail, Air and Sea Freight Forwarding in Australia
International industries
- Global Cargo Airlines
- Freight Forwarding Brokerages & Agencies in the US
- Freight Forwarding Brokerages & Agencies in Canada
- Airlines in New Zealand
- Freight Air Transport in the UK
Table of Contents
About this industry
Industry definition
The industry includes businesses that provide domestic and international airfreight services for freight and mail.
What's included in this industry?
International mail servicesInbound international freight servicesOutbound international freight servicesDomestic freight and mail servicesCompanies
QantasSingapore AirlinesAir New ZealandPurchase this report to view all 9 major companies in this industry.
Related Terms
BULK FREIGHTHUBFLAG CARRIERIndustry Code
ANZSIC 4900 - Air Freight Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite a strong performance during the COVID-19 pandemic, industry revenue has declined. Airfreight volumes remain below pre-pandemic levels, and prices have largely normali...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Outbound international airfreight volumes have plummeted in recent years. The economic downturn caused by the pandemic and inflationary pressures more recently have reduced t...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Airfreight activity primarily occurs at international airports. Industry locations are represented by the volume of airfreight that is transported in and out of each airport.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
External competition is high for airfreight transporters. Alternative modes of freight transport, like water, road and rail, are often cheaper than airfreight.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Passenger airlines lost market share during the pandemic. The number of dedicated freighter flights ramped up while international passenger flight numbers were negligible, dr...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Qantas's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Singapore Airlines's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Air New Zealand's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 6 additional companies
Detailed analysis
- Description and key data for Qantas, and factors influencing its performance in the industry
- Description and key data for Singapore Airlines, and factors influencing its performance in the industry
- Description and key data for Air New Zealand, and factors influencing its performance in the industry
- Description, key data and performance trends for 6 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The International Freight Assistance Mechanism (IFAM) provided significant assistance to airfreight transporters during the pandemic by boosting demand through subsidised frei...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Airfreight operators’ profitability climbed to record levels during the pandemic, but has since fallen back down to earth. Surging oil prices following the start of the Russi...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Air Freight Services industry in Australia in 2024?
The market size of the Air Freight Services industry in Australia is $4.6bn in 2024.
How many businesses are there in the Air Freight Services in Australia industry in 2024?
There are 45 businesses in the Air Freight Services industry in Australia, which has declined at a CAGR of 6.2 % between 2019 and 2024.
Has the Air Freight Services industry in Australia grown or declined over the past 5 years?
The market size of the Air Freight Services industry in Australia has been declining at a CAGR of 5.8 % between 2019 and 2024.
What is the forecast growth of the Air Freight Services industry in Australia over the next 5 years?
Over the next five years, the Air Freight Services industry in Australia is expected to decline.
What are the biggest companies in the Air Freight Services market in Australia?
The biggest companies operating in the Air Freight Services market in Australia are Qantas, Singapore Airlines and Air New Zealand
What does the Air Freight Services in Australia include?
International mail services and Inbound international freight services are part of the Air Freight Services industry.
Which companies have the highest market share in the Air Freight Services in Australia?
The company holding the most market share in Australia is Qantas.
How competitive is the Air Freight Services industry in Australia?
The level of competition is high and increasing in the Air Freight Services industry in Australia.
