CARGO, one of the least glamorous aspects of flying, is proving a rare ray of light for airlines amid the coronavirus gloom.
The grounding of passenger planes at a time of increased demand for everything from medical supplies to iPhones has boosted freight rates. With much of the world’s population house-bound and shopping online instead of hitting the malls, analysts see no let-up in demand, particularly as the peak year-end holiday season approaches.
“Air freight is going to be a bright spot for carriers at least for this year because while borders are closed that doesn’t mean people aren’t buying,” said Um Kyung-a, an airline analyst at Shinyoung Securities in Seoul. “That trend is likely to continue as cargo capacity remains limited.”