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Asia Air Cargo Plummets

Cargo traffic for Asia-Pacific airlines fell in June for the first time in more than three years, a strong signal of deepening problems in the global air freight industry.

The Association of Asia-Pacific Airlines said traffic for its carriers fell 4 percent as airlines scaled back capacity 5 percent.

The decline in traffic was the first for Asia's air carriers since May 2005 and the worst since a 4.2 percent drop in February 2005. The slide that winter was partly the result of an early Lunar New Year that followed dramatically strong growth for Asian airlines the year before.

This year's decline came as Asia carriers pulled back capacity for the third month in a row amid soaring jet fuel prices and lagging demand from shippers and carriers. Several prominent airlines have withdrawn freighters from China, saying growth has lagged behind forecasts and competition has sent yields plummeting.

The sagging freight picture in June came despite a 1.4 percent increase in passenger traffic for the airlines and a 3.9 percent gain in capacity.

 

 




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