newstodate.aero
OCT 16, 2003 (newstodate): SAS Cargo is seeing its freight volumes quite stable and up to budgetted levels, but cargo yields are down.
-Generally, our freight volumes perform nicely, and we are even seeing an increase in the North Atlantic segment. But due to the general downturn in the industry and the global economy, cargo rates are now so low that yields are suffering, says Jarl Frithiof, SAS Cargo director international sales.
-We have cut costs, and in the current competitive situation we are unable to raise rates. The declining yields, therefore, constitute a real problem, he says.
Like most other airlines, SAS Cargo has also not seen any beginnings of the expected peak from September.
-The pre-Christmas peak will come, but belatedly this year. This means that pressure will build on the capacity as we get closer to Christmas, where mail volumes normally double and freight volumes grow by some 20 percent. As much cargo is taken under long-term contracts with fixed terms and prices, the rates for ad-hoc and infrequent customers will probably increase quite significantly, he says.
Even so, Mr Frithiof does not expect the market to eventually reach turnover targets this year.
-Generally, our freight volumes perform nicely, and we are even seeing an increase in the North Atlantic segment. But due to the general downturn in the industry and the global economy, cargo rates are now so low that yields are suffering, says Jarl Frithiof, SAS Cargo director international sales.
-We have cut costs, and in the current competitive situation we are unable to raise rates. The declining yields, therefore, constitute a real problem, he says.
Like most other airlines, SAS Cargo has also not seen any beginnings of the expected peak from September.
-The pre-Christmas peak will come, but belatedly this year. This means that pressure will build on the capacity as we get closer to Christmas, where mail volumes normally double and freight volumes grow by some 20 percent. As much cargo is taken under long-term contracts with fixed terms and prices, the rates for ad-hoc and infrequent customers will probably increase quite significantly, he says.
Even so, Mr Frithiof does not expect the market to eventually reach turnover targets this year.