News / Low fuel prices may seem a bonus for air cargo, but it forces carriers to reduce rates

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The low fuel prices seen since mid-2014 are not necessarily helping air cargo carriers, owing to hedging positions and consequent low rates from competitors.

“From a market perspective, low prices should be a good thing because fuel is such a large part of the operating costs. But from the point of view of Cathay Pacific, it hasn’t really helped us because of our hedging position,” Mark Sutch, Cathay Pacific Airways general manager for cargo, told delegates at Cargo Facts Asia.

“The other thing ...