Air France Cargo on a price-cutting spree

It sounds as though Air France Cargo intends to become a price-cutter.

This is implied by its statement that it will be implementing “extremely aggressive pricing” as an effort to increase its market share and cut its losses.

The air cargo carrier has been on a loss-making trend in the past three years, with figures for its unit revenue per available tonne kilometre (ATK) showing an average loss of just over 2.5% per annum.

It has hit an even worse patch since the end of 2014, when the plummeting fuel prices and volatile exchange rates have hit it hard. So bad that its unit revenues plunged by a full 10% in the January-May period.

Sources: French on-line news service WK-Transport-Logistique.fr and Lloyds Loading List