Struggling cargo business dragging down Asian airlines
Weak economic growth and oversupply of freight capacity by new deep-bellied planes is hurting carriers and cargo businesses.
February 10, 2014
Top Asian airlines’s profit margins are being eroded by a struggling air cargo business, even as they capitalise on increasing passenger demand, according to industry executives.
Languid global economic growth and freight capacity oversupply brought on by new deep-bellied planes is hammering carriers with dedicated cargo businesses, the insiders said ahead of the Singapore Airshow.
Last week IATA said air freight traffic rose by 1.4 per cent in 2013 compared to the previous year, supported by rising activity from Middle Eastern and Latin American carriers.
Asia-Pacific carriers, which have nearly 40 percent of the global freight market, however saw volumes drop 1.0 per cent, while capacity rose 0.8 per cent.