Lufthansa Sees Air Freight Yields in ‘Landslide’ Drop on Glut
- Airline’s cargo pricing has fallen 15 percent to 20 percent
- Carrier may team up with Amazon, Alibaba as market changes
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Deutsche Lufthansa AG said a drop in prices for handling air cargo is reaching “landslide” proportions as carriers exacerbate a capacity glut by adding planes.
“At the moment we have great problems in air freight, in Germany as well as across Europe,” Peter Gerber, who heads Lufthansa’s cargo operations, said late Monday at a briefing in Frankfurt. “Global growth has slowed, and global trade no longer grows faster than economic activity. Persian Gulf carriers keep adding capacity although it does not pay off, and capacity growth currently is three times greater than demand growth.”