Singapore Airlines, facing 'depressed' cargo outlook, cuts freighter capacity 20%

Singapore Airlines (SIA) Cargo president Tan Kai Ping said that "depressed demand ... across all markets gives us little reason to be optimistic about the near-term outlook," driving SIA Cargo to cut freighter capacity by 20%.

SIA said it is not grounding any of its 13 Boeing 747-400Fs but is operating each aircraft fewer hours. The cuts are "mainly for long-haul services," according to an SIA Cargo statement. "The capacity reductions were implemented recently and will continue into the northern summer operating season, which starts [late March]."

Tan said, "With no improvement expected in the first half of this calendar year, and with stubbornly high fuel prices pushing up costs, we have taken appropriate action to reduce our freighter operations to better match capacity to demand."

International air cargo traffic is estimated to have decreased by about 1% year-over-year in 2011 compared to 2010.

Article Source : ATW Daily News