IATA: Passenger bellyhold capacity threatens already weak cargo demand
THE glut in bellyhold capacity of more new wide-body passenger jets, such as the Boeing 770-300 ER and the Airbus A330-300, is threatening to weaken air freight demand still further, says the International Air Transport Association (IATA).
The problem is putting pressure on the market and "what you see is competition forcing yields down," said IATA director general Tony Tyler, former CEO of Hong Kong's Cathay Pacific Airways.
Mr Tyler made the remark following his September downgrade of air cargo traffic of six percentage points from 1.5 per cent to 0.9 per cent for 2013. Passenger growth is set to five per cent growth for the year.
Those with growth increases in August were Middle Eastern carriers up 23.8 per cent, which put pressure on Asia-Pacific freight carriers hit by slowing demand for manufactured goods in the region.
IATA is forecasting cargo growth into 2014 at a healthy 3.7 per cent.
