De minimis cut won't hurt demand for Chinese ecommerce, but for air cargo?
While most companies are professing ‘uncertainty’ over the potential impact of the closure of the ...
DAC: SURGING GM: SUPPLY CHAIN WOESMAERSK: ROTTERDAM TEMPORARY SUSPENSION OF OPERATIONSATSG: OWNERSHIP UPDATERXO: COYOTE FILLIP GONEGM: SUPPLY CHAIN HITBA: CUT THE FAT ON THE BONER: STEADY YIELDMAERSK: SELL-SIDE UPDATESDAC: TRADING UPDATE OUT SOONTSLA: FEEL THE PAIN IN CHINAWMT: GUESS WHATXPO: SURGINGAMZN: LOOKING FORWARDCHRW: PAYOUT UNCHANGEDWTC: NEW HIGH MAERSK: 'AFLOAT IN A SEA OF RISK'
DAC: SURGING GM: SUPPLY CHAIN WOESMAERSK: ROTTERDAM TEMPORARY SUSPENSION OF OPERATIONSATSG: OWNERSHIP UPDATERXO: COYOTE FILLIP GONEGM: SUPPLY CHAIN HITBA: CUT THE FAT ON THE BONER: STEADY YIELDMAERSK: SELL-SIDE UPDATESDAC: TRADING UPDATE OUT SOONTSLA: FEEL THE PAIN IN CHINAWMT: GUESS WHATXPO: SURGINGAMZN: LOOKING FORWARDCHRW: PAYOUT UNCHANGEDWTC: NEW HIGH MAERSK: 'AFLOAT IN A SEA OF RISK'
IAG Cargo this morning announced that its Q3 revenues fell 8%, year-on-year, while volumes fell 4.5% and capacity declined 6.5%. Yields too fell 3.4%. But if the freighter operations are removed from last year’s figures to give a like-for-like basis to the numbers, things looked a little better. Volumes increased 12%, while yield was down 3%. IAG Cargo executives have noted that since the freighters left the fleet, they have been able to concentrate more fully on filling the bellies. Steve Gunning, CEO, was generally upbeat but concerned about the additional capacity coming not the market.
“This is a positive third quarter for the business and we’ve seen good load factor improvements across markets, despite an increase in capacity. The strong performance of our premium products has offset continued underlying price pressure, particularly in the North American market. While we have seen a decrease in yield, this is primarily due to flying increased sector lengths. More generally, while trading is good, there are still fundamental issues with the market in terms of excess capacity.”
Parent IAG bucked the trend of Air France-KLM and Lufthansa, which have been beset by strikes, by raising the forecast for the year-end.
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