DELTA Air Lines' cargo revenue dropped by more than a third year over year for the second consecutive quarter amid an ongoing freight recession that has sharply eroded demand and shipping rates, reports New York's FreightWaves.
The cargo and maintenance businesses pressured total unit revenues by a point in an otherwise strong third quarter for the airline.
The Atlanta-based airline said third-quarter revenue for cargo fell 36 per cent year on year to US$154 million after a 37 per cent decline in the second quarter. Cargo sales year to date through September were down 33 per cent to $535 million. The decline in freight business began early last year. Revenue has tumbled from $272 million in the second quarter of 2022.
The results are in line with an air cargo market that has seen overall volumes fall by 8 per cent to 10 per cent since March 2022, finally hitting bottom in the late summer. Airfreight shipping prices have been 40 per cent to 50 per cent lower than last year for most of the year. Cargo was the airline industry's golden child for nearly two years after the pandemic wreaked havoc with ocean shipping reliability and caused carriers to halt passenger flights, resulting in a huge loss of belly capacity.
delta Cargo even underperformed versus 2019, a relatively weak year for shipping demand. Cargo revenue was 18.5 per cent lower in the third quarter and 6 per cent for the January-to-September period than before the pandemic.
SeaNews Turkey
The cargo and maintenance businesses pressured total unit revenues by a point in an otherwise strong third quarter for the airline.
The Atlanta-based airline said third-quarter revenue for cargo fell 36 per cent year on year to US$154 million after a 37 per cent decline in the second quarter. Cargo sales year to date through September were down 33 per cent to $535 million. The decline in freight business began early last year. Revenue has tumbled from $272 million in the second quarter of 2022.
The results are in line with an air cargo market that has seen overall volumes fall by 8 per cent to 10 per cent since March 2022, finally hitting bottom in the late summer. Airfreight shipping prices have been 40 per cent to 50 per cent lower than last year for most of the year. Cargo was the airline industry's golden child for nearly two years after the pandemic wreaked havoc with ocean shipping reliability and caused carriers to halt passenger flights, resulting in a huge loss of belly capacity.
delta Cargo even underperformed versus 2019, a relatively weak year for shipping demand. Cargo revenue was 18.5 per cent lower in the third quarter and 6 per cent for the January-to-September period than before the pandemic.
SeaNews Turkey
