Major cargo airlines in the region are set to lower their fuel surcharge in the coming weeks following a drop in oil prices – a move likely to revive declining demand for air cargo and provide an opportunity for freighter fleet expansion.
The drop in fuel surcharges will be the first this year for most of the airlines after it was increased for more than six times since January.
Emirates Skycargo, the cargo division of Emirates airlines, will reduce the fuel surcharge on regional cargo shipments from Dh2.4 to Dh2.2 per kilogrames, or its equivalent in local currencies, starting August 21.
The airline will also reduce the fuel surcharge for cargo shipments in Europe from Dh4.8 to Dh4.6 per kg.
Etihad Crystal Cargo and Qatar Airways Cargo, two major regional air cargo carriers whose fuel surcharges have gone up on almost a monthly basis are also set to lower the surcharges.
The reductions by the regional cargo carriers come on the heels of similar announcements by major international cargo airlines as a result of a decline in global oil prices.