More air services to add belly space to cargo

Mumbai: Though the slew of cargo airlines that are waiting in the wings may need more time to take to the skies, the air cargo business, which act as a barometer of airline industry, is picking up. According to industry experts, the business activities are also expected to get a leg up with a number of airlines planning to augment their India services.
According to International Air Transport Association (IATA), the financial situation for the air cargo business appears to be improving significantly. "Freight volumes temporarily interrupted by volcanic ash plume but had grown at 26% annualized pace in 2010Q1 and yields are up 15% by 2010Q1 as load factors regain pre-9/11 levels. Shippers are very confident but business inventory cycle appears to be over which will put a brake on pace of air freight expansion," an IATA statement said. Its not just cargo is picking up, profitability is also returning to airlines.
With this, global and domestic carriers are adding either new destinations or enhancing the existing flights on the existing routes. IATA expects airlines to post a global profit of $2.5 billion in 2010. This is a major improvement compared with its previous forecast released in March of a $2.8 billion loss. This confidence is triggering airlines to deploy more capacity into the market.
28/06/10 Economic Times

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Categories: Cargo Jun 2010