Weakness in Asia and Aircraft Mix Hurt Airline Cargo Business

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Air Canada cargo business hurt by aircraft mix, Asia weakness - FreightWaves
Airline carrier Air Canada reported a 23% fall in its cargo revenue for the third quarter. Despite recently adding its first freighter aircraft to its fleet, the airline reported lower cargo revenues due to a combination of factors, including aircraft mix and a slowdown in demand from the Asia Pacific region.

Air Canada's overall revenue fell by 88% over the same period last year, reflecting the continued impact of the COVID-19 pandemic on the airline industry. However, the drop in cargo revenue is significant, given the additional capacity the airline gained thanks to its newly acquired freighter aircraft.

The airline has been working to grow its cargo business as a way to offset the decline in passenger demand, which has been hit hard due to travel restrictions and social distancing measures. Air Canada's first freighter aircraft, a Boeing 767-300ERF, joined the airline's fleet in June. The aircraft was converted to a freighter from a passenger plane and is being used to transport goods between Canada and Europe.

While adding a freighter aircraft should have provided Air Canada with additional cargo capacity, the airline has been struggling with a mismatch of available cargo space. The airline's passenger aircraft have been equipped with cargo-only flights since the start of the pandemic, but these planes have limited space for cargo. In contrast, the freighter aircraft have a much larger cargo capacity, but these flights can be more expensive to operate.

Additionally, Air Canada has faced a slowdown in demand for air cargo services from the Asia Pacific region, which has been hit hard by the pandemic. Several countries in the region have implemented strict lockdowns, which has led to a decline in business activity and a reduction in air cargo volume. This has had a direct impact on Air Canada's cargo business, as the airline had been relying heavily on trans-Pacific air cargo routes before the pandemic.

In response to the challenges facing its cargo business, Air Canada has been working to diversify its revenue streams by incorporating new initiatives. In addition to adding the freighter aircraft to its fleet, the airline has partnered with logistics companies and e-commerce retailers to grow its cargo business. The airline has also been exploring new routes and alternative transport modes, such as sea and overland shipping.

Air Canada's CFO, Michael Rousseau, said in a statement: "While we are pleased to have added a freighter to our fleet, we acknowledge that we face challenges in matching supply with demand. We are working hard to find innovative solutions to grow our cargo business while managing our costs."

Despite the decline in its cargo revenue, Air Canada remains optimistic about the long-term potential of its cargo business. The airline expects to see a gradual recovery in demand for air cargo services as the global economy continues to reopen.

Air Canada's CEO, Calin Rovinescu, said in a recent statement: "Despite the significant challenges we continue to face due to COVID-19, we remain optimistic about the long-term prospects of our business. We have a strong balance sheet, a resilient workforce, and a solid plan to navigate through the pandemic."

In the short to medium term, however, Air Canada's cargo business is likely to face headwinds. The company recently announced that it will be suspending all flights to Australia and New Zealand until at least June 2021. Without access to these key markets, the airline's cargo business may face additional challenges in the coming months.

Despite the challenges facing Air Canada's cargo business, the airline remains committed to growing this revenue stream. By working to diversify its revenue streams and find innovative solutions to the challenges it faces, Air Canada aims to emerge from the pandemic in a strong position to compete in the global airline market.

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This extensive portfolio enables businesses of all sizes to connect with their global counterparts efficiently and effortlessly.Powered by a global network of carriers and extensive partnerships, [International Rates Service™] ensures seamless and reliable transmission of voice calls and data across continents. The company's robust infrastructure guarantees high voice quality, low latency, and optimized routing, giving customers the peace of mind that their communications are secure and uninterrupted. With its competitive pricing and flexible rate plans, [International Rates Service™] empowers businesses to improve their global reach while reducing communication costs.In recent years, [International Rates Service™] has propelled its growth by continuously adapting to market demands and embracing technological advancements. 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Find Affordable Shipping Rates and Fast Delivery from Any Area of China with Reliable Freight Forwarders

Title: Discover Hassle-Free Shipping from China at Competitive RatesIntroduction (100 words):Are you tired of searching for a reliable freight forwarder in China to handle your international shipments? Look no further! This comprehensive guide will shed light on the exceptional shipping services Bansar offers. With an extensive network covering all areas of China, Bansar provides fast deliveries, competitive costs, and transparent practices. Say goodbye to hidden fees and hello to a stress-free shipping experience. Keep reading to unlock valuable insights into Bansar's shipping capabilities from China, enabling you to make informed decisions and save money. Keyword: shipping from ChinaSection 1: The Benefits of Choosing Bansar (200 words)When it comes to international shipping, finding a reliable and cost-effective freight forwarder is paramount. Bansar excels in this department, providing numerous advantages to its clients. To begin with, Bansar's extensive network covers every corner of China, ensuring seamless logistics regardless of the area. This means that whether you are manufacturing in Shanghai, Guangzhou, or any other city, Bansar has you covered.Another major benefit of choosing Bansar is their commitment to fast deliveries. In today's fast-paced world, time is of the essence, and Bansar understands this. By leveraging their vast experience and robust infrastructure, they guarantee swift transportation of your shipments.Furthermore, Bansar takes pride in offering competitive shipping costs without any hidden fees. By partnering with renowned shipping companies, they negotiate the best rates, passing these savings on to their clients. This transparency ensures that you always know the exact cost of your shipment and can plan your budget accordingly.Keyword: freight forwarderSection 2: A Closer Look at Bansar's Shipping Services from China (300 words)Bansar offers a comprehensive range of shipping services designed to suit various requirements and cargo types. Whether you are shipping small packages, oversized items, or bulk orders, Bansar has the expertise and capabilities to handle it all.1. Ocean Freight:Bansar's ocean freight services are renowned for their reliability and cost-effectiveness. With access to a vast network of carriers, they offer both Full Container Loads (FCL) and Less than Container Loads (LCL) options. This means that regardless of the size of your shipment, Bansar can tailor a solution to meet your needs.2. Air Freight:For time-sensitive shipments, Bansar's air freight services offer unparalleled speed and efficiency. Leveraging their partnerships with major airlines, Bansar guarantees swift transportation and timely deliveries to any destination worldwide.3. Rail Freight:With China's Belt and Road Initiative gaining momentum, Bansar has expanded its railway freight services. This mode of transportation not only offers competitive rates but also significantly reduces transit time compared to traditional sea freight.4. Warehousing and Distribution: To further streamline the shipping process, Bansar provides secure warehousing facilities for short-term or long-term storage needs. With strategically located warehouses across China, managing inventory and distribution becomes effortless.Keyword: shipping services from ChinaSection 3: How to Request a Shipping Quote from Bansar (200 words)Getting a shipping quote from Bansar is quick and easy. Simply visit their website and fill out the provided form with relevant details such as origin, destination, cargo description, and dimensions. Bansar's team of experts will promptly analyze your requirements and provide you with a comprehensive quote outlining the shipping cost, expected transit time, and any additional services required.Besides their user-friendly online quote form, Bansar also offers customer support through various channels, including email, live chat, and phone. Their dedicated team is always ready to assist you, clarify any doubts, and provide personalized shipping solutions tailored to your unique needs.Keyword: shipping quote from BansarConclusion (100 words):When it comes to shipping from China, Bansar stands out as a reliable freight forwarder offering competitive rates, fast deliveries, and transparent practices. With their extensive network covering all areas of China, Bansar ensures seamless logistics and timely shipments. Whether you choose ocean, air, or rail freight services, Bansar has the expertise and capabilities to handle your cargo efficiently. By requesting a shipping quote, you can benefit from their transparent pricing, eliminating any surprises when it comes to shipping costs. Choose Bansar as your trusted partner for hassle-free and cost-effective shipping solutions that cater to your specific needs.Keyword: shipping solutions from China

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