Airlines turn to cargo for revenue as US Senate nears industry aid vote

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Global air freight traffic fell around 10% in February, putting it on course for a 15%-20% drop for the year. FMTNews Airline Airfreight Travel

Air New Zealand joins the growing number of carriers offering cargo charters on passenger planes.

Virgin Australia Holdings Ltd plans to permanently cut more than 1,000 jobs among the 8,000 staff that have been stood down due to cuts to its flying schedule, Chief Executive Paul Scurrah said. In the United States, United Airlines Holdings Inc announced further cuts to domestic capacity, meaning its overall capacity, including international, will be down by around 68% in April.

The draft bill has restrictions on stock buybacks, dividends and executive compensation, and allows the government to take equity, warrants or other compensation as part of the rescue package. Around half the world’s air cargo normally travels in the bellies of passenger planes rather than dedicated freighters, so the cancellation of passenger flights has led to a sharp reduction in cargo capacity.

 

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