China operation update
The current COVID19 epidemic is having a significant impact on the air freight industry. China is the traditional powerhouse for exports worldwide. The outbreak of the COVID19 epidemic, coinciding with the Chinese Lunar New Year and the extension thereof, has unfortunately had a significant impact on demand for air freight out of China as many factories have not yet re-opened.
Cargolux and Cargolux Italia have adjusted their flight schedules accordingly and reduced their frequencies into China to adjust to the market situation. We expect our service to China to increase in the coming weeks to accommodate the resumption of factory production. These flights will, however, be operated in accordance with recommendations from the WHO and other regulatory bodies as well as Cargolux’s own restrictions including no crew layovers in China.
Since factories have been closed longer than usual, there will be a certain amount of backlog that must be catered for to replenish inventory levels and to provide required parts and materiel for manufacturers outside of China, e.g. the automobile industry. This situation could well result in a surge in demand for air freight capacity out of China when production recommences.
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