Singapore reduces cargo capacity as traffic declines

SINGAPORE Airlines’ cargo traffic showed a 4.9 per cent decline in year-on-year growth for March, following a similar decline in capacity – however, cargo load factor remained unchanged.

The airline attributed the decline to a reduction in its freighter services to the US, following declines in yields on a number of routes.

The increase in competition and overcapacity in the South West Pacific region saw the airline’s cargo load factor decline from 64.3 per cent to 60 per cent, increasing worries about the profitability on a number of Asia-US and Asia-Europe services.