coronavirus air travel

Financial losses for the global airline industry were sequentially smaller in the second quarter

In the airline world, slots doesn’t mean playing the slot machines in Las Vegas. Slots are how big airports divide up available windows for takeoffs and landings among airlines. Airlines want regulators to cut them some slack on meeting their flight quotas during COVID, but competitors say they want an opportunity to fill the void.

The viability of the airline industry is at stake because COVID has mostly wiped out passenger travel. The group’s global trade association is pleading with governments to help airlines with rule changes and financial aid.

Airfreight exports from China slowed a bit in mid-August, allowing shippers to take back a tiny bit of pricing before rates shoot up for the next few months in as retailers build inventory for the holidays.

Tensions between the U.S. and China are high on a number of trade, diplomatic and security fronts but are easing when it comes to air travel. Both governments are now allowing more flights from each country.

Cathay Pacific has been flying passenger planes on cargo missions for months, but only in the last couple of weeks did it revert to pulling seats to create more cargo capacity. The new cargo capability comes with additional safety requirements and operational challenges.

Shipping goods by air is expensive, especially on the biggest trade lines from China. Rates are much higher than normal for this time of year, but they are heading up more with no end in sight.

The cargo divisions at Air Canada, IAG/British Airways and Air France-KLM played dominant roles for their respective airlines in the second quarter, creating cash flow. Typically, they barely register on the financial statement. What happened?

Airfreight rates from China are on the rise again. The rest of the world is more stable when it comes to air cargo. But China is driving much of the transport activity because of its export of face masks and other goods.