AIR CARGO demand rocketing in response to global economic recovery, says Lufthansa Cargo CEO Carsten Spohr.

"We are experiencing a marked upswing especially in Asia," he said in a statement. "Ongoing market developments are giving rise to a degree of optimism for 2010. The crisis has bottomed out and demand is rising steeply."

The Lufthansa group said in its recent annual report that it expects the cargo division to return to an operating profit by next year after posting a record loss of EUR171 million (US$233.6 million) for 2009.

As the global economy recovers, more goods are being shipped around the world and cargo planes are filling up again, said Reuters. IATA said last week it sees 2010 cargo demand growing by 12 per cent, more than making up for last year's slump. A third of world trade by value is in goods sent by air, so any uptick in air cargo volumes around the world indicates that the global economy is doing better.

Lufthansa Cargo also announced that it would reduce its short-work week programme in April and May and end it entirely in September, after the traditionally weaker summer months.

"Our strategy has paid off. At the very onset of the crisis, we quickly and drastically reduced our costs. We then selectively expanded capacity for customers so as to actively open up new markets," said Mr Spohr. 

Source: www.schednet.com