MEMBER airlines of the Global Cargo Council, Inc (GCCI) are reducing flights to and from the Philippines due to falling cargo and passenger volumes.
GCCI president Jerry Calaluan told PortCalls association members “are really puzzled” over the “sudden dip in volumes”, noting that the runup to the Christmas season is normally a good time for carriers.
It does not help that international freight forwarders working with airlines are also hazy about their cargo forecasts, making it difficult for airlines to plan ahead.
“If current conditions drag further, the recovery of airlines from the global financial crisis could be a distant (scenario),” Calaluan, who attended last week’s PortCalls Cargo Economics Conference, said.
The local situation is puzzling considering reports by various groups of improved performance by the international aviation industry.
The International Air Transport Association earlier revised upward its 2010 industry profit projection to $8.9 billion from $2.5 billion.
The Association of Asia-Pacific Airlines also said it has a broadly positive outlook for the remainder of the year but anticipates slower growth going forward.
