Lufthansa Cargo Doesn't See Drastic Decline In Air Cargo

Lufthansa Cargo, the logistics unit of Deutsche Lufthansa AG (LHA.XE), said Tuesday it doesn't expect a dramatic decline in air freight in fourth-quarter 2011, although shipments will likely fall partly due to strong growth in the prior-year period.

Lufthansa Cargo spokesman Nils Haupt said Asian air freight is showing some weakness at present given that exports from China have shown the first signs of a slowdown.

However, German exports are still providing solid support for air freight shipments to Asia and elsewhere, Haupt said.

He added that the expected decline in air cargo shipments in the fourth quarter is related to strong growth rates in the prior-year period when the global economy was buzzing.

Additionally, cargo carriers have more capacity in the market than in the fourth quarter of 2010, he said.

The comments come after Cathay Pacific Airways Ltd.'s (0293.HK) Chief Operating Officer Ivan Chu earlier Tuesday said he expects to see double-digit declines in Asia's total air cargo volume this year, dragged down by a decline in trade amid a slowdown in the global economy.

-By Kirsten Bienk and Jan Hromadko, Dow Jones Newswires; [phone]; [e-mail]; [e-mail]

(Joanne Chiu in Hong Kong contributed to this article.)