Delta second quarter cargo revenue plunges 17pc to US$186 million
DELTA Air Lines saw its second quarter cargo revenue fall by 17 per cent year on year to US$186 million overall revenue increased 8
DELTA Air Lines saw its second quarter cargo revenue fall by 17 per cent year on year to US$186 million overall revenue increased 8.7 per cent, reported New York's Air Cargo World.
According to Delta president Glen Hauenstein both cargo volumes and yields contracted during the quarter 'as industry capacity continues to outstrip demand.' He added that the airline is introducing measures to reduce the impact of lower cargo demand on its business, reported New York's Air Cargo World.
Moving forwards, the carrier is 'very cautious on the cargo outlook for the remainder of the year.'
Mr Hauenstein attributed the decrease in cargo volumes to tariffs and 'geopolitical trade tension' that spurred retailers to stock up on inventory last year ahead of the implementation of US tariffs on Chinese imports. In the near-term, that translates into lower demand for air freight as cargo shifts to other, slower modes of transport that are comparatively cheaper.