Singapore Airlines’ cargo division reports bearish demand and will now maintain recent capacity cuts through the summer season.
“Demand has been weak in many markets,” said spokesman Pie Jie Woo.
SIA Cargo, which operates 13 Boeing 747-400 freighters after taking delivery of two B747-400 converted aircraft in 2011 that were previously operated by Singapore Airlines, reduced capacity by 20% in the first quarter due to high fuel prices and underwhelming markets.
Poor yields and over-reach saw SIA Cargo’s third quarter fiscal 2010 profit of $48 million turn to an operating loss of $40 million in the third quarter of fiscal 2011.
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