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Categories
| 30% drop in cargo for Emirates |
| Business & Market 2009 | |||
| Written by Joy Lee | |||
| Monday, 15 June 2009 10:57 | |||
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Its president Tim Clark said the segment saw a drastic drop in comparison to its passenger volume which saw a 13% increase year-on-year in the last two months. “Cargo has been doing badly and it doesn’t look likely to improve any time soon,” he told The Edge Financial Daily last week. Clark said any improvement may take at least 18 months to two years. “We haven’t seen the full impact yet. East Europe will start failing next, and you can expect to see even more bad news. The cargo segment may get worse,” he said. However, he said its cash balance of US$3 billion (RM10.5 billion) allowed it to absorb the impact during this period. Airline cargo represents 37% of total freight and is a good indicator of economic health. International Air Transport Association (IATA) director-general and chief executive Giovanni Bisignani said air freight had stabilised at an annual decline of 20% to 21% but there had yet to be any signs of improvement in cargo traffic or the economy. Air cargo demand was expected to decline by 17% to 33.3 million tonnes this year from 40.1 million tonnes in 2008 and yield had deteriorated by 11%, IATA said. Bisignani said signs of an economic recovery would only come when cargo improved to 16%. This article appeared in The Edge Financial Daily, June 15, 2009.
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