EXTRANS GLOBAL - Air Freight News - Week 51 2025

Air Cargo General

1) Sono International Infuses ₩127 Billion into T’way Air

Sono International is injecting over ₩100 billion into T’way Air, a KOSDAQ-listed carrier. Industry analysts interpret this move as a priority to normalize T’way Air’s operations, paving the way for Sono International to relaunch its initial public offering (IPO) next year.

According to investment banking (IB) sources on the 14th, T’way Air’s board of directors approved a ₩191 billion capital increase plan on the 11th.As the largest shareholder, Sono International will contribute ₩100 billion via a private placement to third parties. The remaining ₩91 billion will be raised through a combination of shareholder allocation and public offering of common shares. This is seen as a compromise to minimize retail shareholder backlash while securing funds for financial restructuring.

Sono International currently holds approximately 30.35% of T’way Air’s shares. If it participates in both the third-party private placement and shareholder allocation, its total investment will reach ₩127 billion. Back in June, Sono International expanded its business into the aviation sector by acquiring a 46.26% stake in T’way Air for around ₩250 billion, with plans to list on the stock market within the year to secure funds for resort operations, overseas expansion, and aviation synergy development.

However, T’way Air’s sustained poor performance has made it difficult to meet exchange listing criteria. The carrier recorded an operating loss of ₩209.3 billion in the first three quarters of the year, with total capital standing at only about ₩40 billion as of the end of Q3.The risk of renewed capital erosion cannot be ruled out if losses persist. Consequently, Sono International has prioritized T’way Air’s normalization, even selling assets such as the Sono Tower to raise cash. An IB industry insider commented, “This capital injection is largely a preliminary step for Sono International to relaunch its IPO.”

2) Will AI Data Center Expansion Trigger an Air Cargo “Supercycle”? – Market Expectations for Sharp Rate Hikes Heat Up

The global air cargo industry is seeking new growth opportunities in the transportation of AI servers and high-tech equipment. Despite concerns over an “AI bubble” raised in some corners of the stock market, many experts predict that data center expansion will continue for the foreseeable future.

A growing consensus suggests that as global data center expansion peaks in the coming years, cargo flows related to AI servers and semiconductors are likely to maintain strong growth momentum until at least 2026.

Citing recent data from Goldman Sachs, global data center utilization rates already reached 85% in 2023 and are projected to surge to over 95% by the end of 2026. While utilization is expected to ease slightly in 2027 with the commissioning of new facilities, North America, China (Beijing, Shanghai), and San Francisco are set to emerge as undisputed global core hubs.

Notably, AI-related data center expansion presents both opportunities and uncertainties for the air cargo market.Market players emphasize, “Data center-related logistics will drive explosive growth in cargo volumes and entire supply chains.” It is anticipated that trillion-dollar-scale investments will flow into the data center sector over the next three years, exerting a profound impact on air cargo capacity supply.

In particular, AI servers require specialized handling, including temperature, shock, and humidity control, which will inevitably drive demand for air cargo transportation. This trend is reflected in manufacturers’ aggressive responses to surging AI server demand.Foxconn’s AI server production revenue has nearly doubled quarter-over-quarter, and industry-wide server shipments are expected to double next year.

Practical market performance also validates this trend: as Taiwan emerges as an AI server hub, the Taiwan-U.S. route has formed the highest air cargo rates globally. Additionally, global data center power capacity is projected to expand to 122GW by 2030.

3) Newcomer Parata Air Surpasses Air Seoul and Aero K Within Two Months of Domestic Route Launch

Parata Air’s domestic passenger traffic reached 27,890 passengers in October, overtaking Aero K (15,861 passengers). In November, passenger volume rose further to 28,225, surpassing Air Seoul.

This achievement propelled Parata Air to 7th place among South Korea’s 9 low-cost carriers (LCCs) by passenger count, overtaking two established players shortly after launching domestic routes.

Amid the crowded LCC market, industry experts praised the newcomer for “a strong start,” noting its ability to quickly catch up with incumbents and maintain relatively robust load factors.

The key to its success lies in deploying large aircraft: Parata Air operates 294-seat A330-200 widebodies on the Yangyang-Jeju and Gimpo-Jeju domestic routes. This stands in stark contrast to other LCCs, which typically use 180-seat narrowbody aircraft (A320, B737) for short-haul domestic services, allowing Parata Air to carry more passengers per flight.

Building on stable domestic operations, Parata Air launched a series of international routes last month, including Incheon-Tokyo Narita and Incheon-Vietnam (Da Nang, Phu Quoc, Nha Trang). This month, it added the Incheon-Osaka route, officially kicking off full-scale international operations focused on Japan and Vietnam. Current load factors for these international routes hover around 90%, higher than those of its domestic services.

Parata Air currently operates a mixed fleet of 4 aircraft: 2 A330-200 widebodies and 2 A320-200 narrowbodies. Generally, different aircraft types require dedicated maintenance and flight crews, making a single-type fleet more cost-effective than mixed operations.

With the full launch of international routes, the carrier will replace widebodies with narrowbodies on domestic routes starting this month. A Parata Air insider explained, “Operating both widebody and narrowbody aircraft is a strategic move targeting future long-haul routes to North America and Europe. Long-haul routes boast higher profitability, and their revenue contribution will far outweigh the cost advantages of a narrowbody-only fleet once they are officially launched.”

4) IATA: 2026 Air Cargo Market Growth to Slow, but Structural Demand Persists

The International Air Transport Association (IATA) forecasts that the global air cargo market will maintain growth momentum in 2026, albeit at a slower pace.

During its Global Media Day event, IATA stated, “Global air cargo volume is expected to grow by 2.6% next year, a decline from the 3.1% growth projected for 2025.”Against the backdrop of a projected global trade growth rate of just 0.5% over the same period, market analysts assess that air cargo will continue to demonstrate relatively resilient performance.

Key factors supporting air cargo demand next year include: ▲ high-value cargo such as AI and semiconductors ▲ time-sensitive goods ▲ structural growth in e-commerce. Analysts note that in an environment of persistent supply chain uncertainty, the speed and flexibility of air cargo will continue to be favored by the market.

By region, the Asia-Pacific and Europe are expected to maintain the most stable growth. Africa and Latin America are also projected to see moderate expansion. Meanwhile, the North American market is likely to remain relatively weak due to tariff policy impacts. The Middle East region is set to gradually return to normalcy after experiencing exceptional cargo volume growth in 2024 due to the Red Sea crisis.

However, supply-side constraints will remain a major risk factor next year. Industry experts point out that unresolved structural issues—such as aircraft delivery delays, fleet shortages, and airport slot restrictions—could weigh on the air cargo market’s responsiveness and expansion capacity.

IATA commented, “As the global trade environment remains heavily influenced by tariff and geopolitical risks, stability and adaptation will replace growth as the core keywords for the 2026 air cargo market.”

5) Airlines Movement

Air Premia (YP): Announced the launch of new Incheon-Washington D.C. flights starting April 24 next year, with 4 weekly services.
Nippon Cargo Airlines (NCA): Signed a Block Space Agreement (BSA) with Mexican cargo carrier MAS for the 2024/25 winter season.
- NCA will provide cargo services on the Los Angeles (LAX)-Guadalajara (GDL) and Los Angeles (LAX)-Mexico City (NLU) routes.
- MAS will gain access to NCA’s NRT-LAX and LAX-NRT routes via the BSA, enhancing its connectivity to the Japanese and Asian markets.

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