Lufthansa CFO sees cargo booming

19 Jul, 2010

Lufthansa's cargo business is benefiting from rising demand for goods in China and growing appetite world-wide for Chinese goods, the airline's finance chief said.
"The cargo business is currently absolutely booming. For the first time in over 10 years we are seeing not just strong imports out of China, but also strong exports to China," Stephan Gemkow told Reuters Insider television on July 13.
Demand in China for goods made in the United States and in Europe is rising as workers' wages improve and markets open. Trade data showed that imports rose 34.1 percent in June.
At the same time, exports rose 43.9 percent, giving China a $20 billion trade surplus.
Global industry body International Air Transport Association (IATA) said last month that demand for both air travel and air freight rose strongly in May and now exceeds levels seen before the global economic downturn.
Air cargo is seen as a leading indicator of the health of global trade. Lufthansa, Germany's biggest airline, reported a 20 percent rise in June cargo.

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