A 15.5% increase in international cargo traffic at Miami International Airport, mostly to and from Latin America, during the first quarter indicates how the continent's airlines can compensate for lower passenger revenues.
A good example is the region's largest cargo carrier, LanChile. Some 40% of the group's income comes from cargo and the growth of its first quarter net profits by 26.6% to $21.6 million has prompted Chile's competition authorities to investigate alleged "cross-subsidies from cargo to domestic passenger operations".
LanChile's president Enrique Cueto responds: "Cargo and passenger operations must work 100% together, this has always been one of our basic strategies. It has been very successful and no competition authority can oblige us to drop a legitimate strategy."
Speaking at the Latin American Aviation CEO conference, Arrow Air's chief executive Richard Haberly said cargo "helps recognise deeper market tendencies. Traffic and rates to Brazil have bounced back to normal - an indicator that the Brazilian market will be very important."
Meanwhile, Lloyd Aereo Boliviano (LAB) has received two Boeing 767s during the last few months, allowing it to exploit belly space for carrying cargo between South America and the USA.
Source: Flight International
