Global air freight operations unviable in current conditions: Lufthansa Cargo

Lufthansa Cargo reportedly plans to increase its rates by 25% over coming weeks, in an attempt to reverse the "dramatic" recent decline in freight yields (International Freighting Weekly, 03-Sep-2009). The carrier has also claimed that if current market trends continue, in the medium term, the majority of the world's freighter fleet would have to be permanently grounded, due to a lack of economic justification for their continued operation.

Lufthansa Cargo: "The massive slump in demand has, of course, affected everyone involved in the transport chain - forwarders, shippers and airlines. But we, the carriers, have been hit particularly hard. At present, the drastic fall in demand for air freight capacity is accompanied by a dramatic decline in rates…. In order to meet the current market challenges, we will gradually raise our rates over the coming weeks by an average of 25% worldwide. But even this increase will only partially compensate for the dramatic decline in rates in the last few months," Andreas Otto, Sales Director. Source: International Freighting Weekly, 03-Sep-2009.