Hard hit Korean Air Cargo halts cargo handling at three terminals
KOREAN Air says it will stop transport and cargo handling services at its terminals in Gwangju, Cheongju and Daegu from October 1 to boost its financial position, after its first quarter cargo revenue decreased by 7
KOREAN Air says it will stop transport and cargo handling services at its terminals in Gwangju, Cheongju and Daegu from October 1 to boost its financial position, after its first quarter cargo revenue decreased by 7.6 per cent year on year.
The carrier's freight tonne kilometres fell 9.4 per cent in the first quarter when it suffered a net loss of KRW10 billion (US$9.2 million), which it attributed to the US-China trade row and a strong US dollar, respectively.
Second quarter cargo sales plunged 13.6 per cent year on year, according to local media reports.
Partner Delta has also had a tough time. Its second quarter cargo revenue was down 17 per cent to $186 million, while cargo ton miles decreased by 12.2 per cent. Overall, the air cargo market has contracted by 3.3 per cent in the first five months of the year, compared with the same period in 2018, reported London's Loadstar.
Korean Air CEO Walter Chi told IATA last month: 'The cargo market changes every year and it's very hard to predict the future. There is no doubt that we are in a downturn, and that will affect results.
'The airline is doing what it can to mitigate the challenges. We have new, fuel-efficient aircraft and there is also a new cargo system to make reservations and operations more efficient.'
The carrier's freighter fleet comprises 12 Boeing 777s and 11 B747s.
According to DHL's global trade barometer, published last month, 'the air trade outlook in South Korea is suffering, mainly due to exports, which are expected to weaken as most contributing industries are expected to contract.
'On the other hand, air imports are predicted to grow modestly, driven by temperature or climate-controlled goods and backed by the modest growth of machinery parts and basic raw materials. High-tech is expected to weigh down on the air import outlook.'