Airlines are seeing signs of weakening air cargo demand as inflation and slowing growth weigh on global trade, reported Lyon's Euronews
Airlines are seeing signs of weakening air cargo demand as inflation and slowing growth weigh on global trade, reported Lyon's Euronews. The Baltic Air Freight Index fell 8.7 per cent last week, while IATA forecast a 6.4 per cent drop in freight revenue for carriers this year. Qatar Airways chief executive Akbar Al Bakar said inflation would dampen business activity and reduce cargo volumes.
'When there is a downturn in business, people don't buy stuff we normally carry as cargo,' Mr Al Bakar told reporters in Doha.
Dubai economist Edward Bell said consumers and companies face a 'vortex of price pressures' that will intensify through the year.
Korean Air chief executive Walter Cho noted freight rates had softened but remained well above pre-pandemic levels. 'Demand is weak especially since China is basically shut down,' Mr Cho said, though he expects recovery and sustainability into next year.
Cathay Pacific chief executive Augustus Tang said cargo load factors had declined due to added capacity, but the overall trend remained positive.
The World Bank recently cut its global growth forecast by 1.2 percentage points to 2.9 per cent, warning of looming recessions.
United Airlines chief executive Scott Kirby said cargo demand would remain 'really robust' despite moderating rates, citing persistent supply chain issues.
Emirates cargo head Nabil Sultan said rates would stay elevated for six to eight months due to fuel costs, though rising operating expenses were making some routes unviable.
Emirates is expanding freight routes into China, anticipating a rebound in production. Both Emirates and Korean Air are evaluating new orders for Airbus and Boeing 777x freighters.
SeaNews Turkey
