“I don’t see that January is going to be back to normal at all,” Ms Tipping said. “We need to consider that this will go on longer, until flights are back to normal sense of regularity.”
Data released by the Department of Infrastructure and Transport last week show that inbound and outbound air freight fell to 26,5151 tonnes in the four months from March to the end of June, a fall of 26 per cent from the same period last year and a 30 per cent drop from 2018.
Total exports of fresh and processed foods grew by 5 per cent in the year to June 30, according to the Department of Foreign Affairs and Trade.
Trade minister Simon Birmingham topped up the program’s initial $110 million funding with $242 million at the start of July, which he said would extend to program until the end of 2020. The program subsidises airlines to use empty passenger aircraft for otherwise unviable cargo-only flights, and has so far supported 62,000 tonnes of exports to 63 destinations worth $1.1 billion.
Air cargo represents less than 1 per cent of Australia’s imports and exports by volume, but accounts for 21 per cent by value, worth $43 billion a year, according to a 2019 report by Infrastructure Partnerships Australia and BIS Oxford Economics.
Loading
Singapore Airlines, the biggest international air freight operator in Australia both before and since the pandemic, last week flew six dedicated freighter aircraft return flights to Australia, along with 26 flights using passenger jets carrying only cargo and 10 flights carrying both passengers and cargo.
Singapore Airlines’ general manager for cargo in Australia and New Zealand, Nicholas Kok, said many of its cargo flights would not be viable without the IFAM program.
“The very sudden removal of more than 80 per cent of our cargo capacity in March this year placed a huge strain on the cargo industry,” he said.
“We know in normal times, cargo operations makes up a small percentage of our overall revenue. Now, it is the only meaningful source of revenue for the business.”
Ms Tipping said that exporters of non-perishable or non-urgent exports had largely been able to shift to sea freight.
Airlines are plotting a long recovery for passenger travel from the COVID-19 crisis. Qantas boss Alan Joyce said in June that he did not expect to be doing any meaningful flying within the next 12 months.
Some airlines have started to return capacity to Australia however, with Qatar Airways resuming twice-weekly flights from Adelaide to Doha on Sunday.
Business Briefing
Start the day with major stories, exclusive coverage and expert opinion from our leading business journalists delivered to your inbox. Sign up for the Herald‘s here and The Age‘s here.
