HomeNewsNewsAir freight demand begins to wane amid global economic shocks

Air freight demand begins to wane amid global economic shocks

Labourers work inside and around a passenger plane as they convert it into a cargo plane at Israel Aerospace Industries site in Ben Gurion International Airport, Lod, Israel December 10, 2020. Picture taken December 10, 2020 REUTERS/ Ronen Zvulun

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DUBAI, June 20 (Reuters) – The strong air cargo demand that has helped passenger-deprived airlines stay afloat over the past two years is showing signs of softening amid decades-high inflation that is pushing up costs.

The Baltic Air Freight Index , which shows weekly transactional rates for general cargo, fell 8.7% last week, while the airlines group IATA predicted on Monday that freight revenue generated by carriers this year would fall by 6.4%.

“There will be a downturn in business, and when there is a downturn in business, people don’t buy stuff that we normally carry as cargo,” Qatar Airways Chief Executive Akbar Al Baker told…

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