Air, Feature, Freight News

Capacity weighs heavy on airfreight market

[ August 28, 2014   //   ]

The capacity some airlines are bringing onto the main markets is driving airfreight yields down to a level that will be unsustainable for many operators, warned Virgin Atlantic’s director of cargo, John Lloyd. Yields in the first half of the year were flat in the Europe, Middle East and Africa and Asia Pacific. The drive for all-in ULD rates in the American market and increased customer buying power due to excess market capacity meant this was the market most impacted by falling yields.

However, Virgin itself saw tonnage rise 1% in the first six months of 2014 to 111,196 tonnes and a 3% increase in its load factor to 76% network-wide, despite a 3% reduction in the airline’s cargo capacity in the six months to the end of June.