New Lufthansa Cargo CEO says high oil, rising demand to boost rates

LUFTHANSA CARGO is warning that air freight rates are expected to rise in the fall with increasing global economic recovery that provides rising demand, and high oil prices that grounds older, less fuel efficient aircraft.


"At the moment though, we are not seeing rising freight prices," Lufthansa Cargo CEO Karl Garnadt told a press conference.


The International Air Transport Association (IATA) said air freight volumes had picked up 3.7 per cent in March and that economic recovery should support recovery in air cargo in the second half, reported London's International Freighting Weekly.


Mr Garnadt doubted Lufthansa Cargo would be able to repeat its sterling 2010 performance of record operating profits of EUR310 million (US$445 million). "We would be satisfied even if profits fell 20 per cent," he said.


Mr Garnadt, who took over in January, said Lufthansa was now looking to South America for pharmaceutical opportunities, and for the rising demand to counter weaker demand from China.
(Source:http://www.schednet.com)