Luxembourg-based Cargolux has announced it expects the cargo freight market will remain weak this year, according to industry leaders, as it remains hampered by overcapacity and weak growth in several regions around the world, the company said.
Speaking at the Airline Economics Growth Frontiers conference in Dublin, industry leaders see 2020 not improving significantly. There will be some capacity coming out of the market, so there is some balance coming, but the price pressure will continue.
The airline will still announce a profit for 2019 and intends to keep its capacity roughly steady through 2020. It expects freight growth to return in 2021.
Brexit is unlikely to have a substantial short-term impact on the market, in the view of participants. The UK accounts for around 6% of Cargolux´s volumes, and the airline does not expect any impact from the transitional period that runs from January 31 to the end of 2021 .
An EU-UK air services deal is required, which could be an impact on the tonnage. There is also the potential for customs changes to affect operations over the long-term.