Airfreight Pulse: More capacity eases pressure on rates

Flight preparations as viewed from behind and below the tail of a big jetliner.

Airfreight rates continued to fall in July as virus-related shipments gave way to a more normal mix of commodities and beefed-up passenger schedules presented greater transport opportunities for shippers.

But there are signs the trend may not last. The ebb and flow of coronavirus containment and spread in different regions of the world presents a cautionary note against expectations the airline industry recovery will continue in a straight line without interruption, and that cargo capacity won’t...

https://s29755.pcdn.co/news/airfreight-pulse-more-capacity-eases-pressure-on-rates

United Airlines to cut 4,700 employees in Houston, Dallas

United Airlines said Friday that it will lay off more than 4,700 workers in Houston and Dallas beginning Oct. 1, according to its Worker Adjustment and Retraining Notification (WARN) Act notice filed in Texas.

The layoffs come as United said on Wednesday it could cut as many as 36,000 employees nationwide — nearly 40% of its workforce — due to the pandemic, which has crippled air travel globally.

“The COVID-19 pandemic has caused so much change in our personal and professional lives and will...

https://s29755.pcdn.co/news/united-airlines-to-cut-4700-employees-in-houston-dallas

U.S. airlines cancel Hong Kong flights over crew testing

Big United plane on tarmac, side view close up.

United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL) have temporarily suspended flights to Hong Kong after the city imposed invasive COVID-19 testing on all arriving crew members.

The first round of mandatory aircrew tests found four cases of infection, including three pilots working for Hong Kong Air Cargo, a unit of Hong Kong Airlines, who had just returned from Almaty in Kazakhstan, according to the South China Morning Post

Hong Kong health authorities tightened testing rules...

https://www.freightwaves.com/news/u-s-airlines-cancel-hong-kong-flights-over-crew-testing

United Airlines to reintroduce China service in July

White jet, blue tail, United Airlines at airport gate.

U.S. airlines are taking advantage of a mild loosening in Chinese aviation restrictions to restart service to mainland China, a key market for rebuilding revenues and for shippers with goods to move.

United Airlines (NASDAQ: UAL) announced Friday that it will resume service to China with twice-weekly flights between San Francisco and Shanghai Pudong International Airport beginning on July 8. The flights will operate with a Boeing 777-300ER aircraft and route through Seoul, South Korea. Prior to...

https://s29755.pcdn.co/news/united-airlines-to-reintroduce-china-service-in-july

Airlines seek government help to survive winter doldrums

Close up of a white jet from behind the wing, jet is on the ground.

Airlines need more government help dealing with the fallout from the coronavirus if they are to get through the winter doldrums, when revenues tend to wane, the International Air Transport Association (IATA) said Tuesday. 

The key to survival during the winter is schedule flexibility at large airports and for that airlines say they need relief from use-it-or-lose- it slot rules – authorizations to takeoff and land at busy airports on a particular day during a specified time period. 

Governments...

https://www.freightwaves.com/news/airlines-seek-government-help-to-survive-winter-doldrums

Pandemic fails to dampen AA Cargo’s IT esprit

American Airlines (NASDAQ: AAL) postponed most projects and slashed spending when the coronavirus pandemic wiped out passenger travel, but reengineering its cargo management system has proceeded without a beat. And it’s already proving to be a timely upgrade.

Angela Hudson, head of transformation at American Airlines (Photo: Courtesy)

In October 2019, the airline picked  IBS Software to be the backbone of its new cargo system. The iCargo platform supports all aspects of American’s cargo sales,...

https://www.freightwaves.com/news/pandemic-fails-to-dampen-aa-cargos-it-esprit

US-China airline quarrel exacerbates supply shortage for cargo

Big white jet in air after takeoff, flying overhead

The air service dispute between the U.S. and China over resuming passenger air travel will have spillover effects for airfreight shippers and other areas of trade as the relationship between the countries deteriorates, industry and legal experts say.

Limiting flights from each country perpetuates the shortage of cargo capacity resulting from the extensive shutdown of passenger operations due to the coronavirus outbreak and sets the stage for potential Chinese retaliation against other industry...

https://s29755.pcdn.co/news/us-china-airline-quarrel-exacerbates-supply-shortage-for-cargo

Airlines restore some service, but finances remain grim

White and red plane banking to the right above the clouds.

U.S. and international airlines are gradually rebuilding their networks as travel demand perks up, but the latest financial results demonstrate the road to recovery from the pandemic will be long and difficult.

Carriers this week showed increasing optimism that passenger business is coming out of a three-month slumber by resuming more service in the summer compared to May, led by American Airlines (NASDAQ: AAL) announcing plans to operate its domestic schedule in July at 55% of its prior-year...

https://s29755.pcdn.co/news/airlines-restore-some-service-but-finances-remain-grim

Airlines fight to exit ‘intensive care’

A white United Airlines plane in storage on tarmac.

Despite signs of modest improvement in passenger traffic and the lifting of many coronavirus restrictions, airlines aren’t relaxing efforts to shore up balance sheets and restructure in hopes of remaining solvent until demand returns in a meaningful way years from now.

Since Friday, several U.S. and international airlines have announced they are receiving more government assistance to stay afloat, implementing reorganization plans and laying off workers. Still, some airline executives are...

https://s29755.pcdn.co/news/airlines-fight-to-exit-intensive-care

With eye on rebound, United looks for alternative to furloughs

White jets with blue tails at airport terminal

Domestic airlines this week announced plans to permanently eliminate large numbers of management and administrative jobs as a prelude to even larger reductions in frontline forces. But United Airlines (NASDAQ: UAL) CEO Scott Kirby dismissed furloughs as an a primary option, saying they are a temporary solution that undermines the ability to capitalize on growth opportunities when coronavirus fears subside and travel takes off again.

No one knows when strong demand will return, so United’s...

https://s29755.pcdn.co/news/with-eye-on-rebound-united-looks-for-alternative-to-furloughs