EXTRANS GLOBAL - Air Freight News - Week 12 2025

Air Cargo General

1)  Asiana Airlines to Reduce Some European Routes Starting Late April  

• Asiana Airlines (OZ) will reduce some European routes starting from late April as part of corrective measures by the European Union (EU) competition authorities to address concerns over monopolization of European routes.
• Asiana Airlines halted sales for the planned route reductions on December 12 last year, coinciding with its integration into Korean Air's subsidiary.
• Some of Asiana Airlines' operating rights for three European routes (Frankfurt, Paris, Rome) have been transferred to domestic carriers, ensuring that the supply capacity of domestic airlines on European routes remains unchanged.
• Starting from April 25 (Friday), Asiana Airlines will reduce the Incheon-Rome route from 5 flights per week to 4 flights per week, a reduction of 1 flight. From April 30 (Wednesday), the Incheon-Frankfurt route will be reduced from 7 flights per week to 4 flights per week, a reduction of 3 flights. Additionally, from May 12 (Monday), the Incheon-Paris route will be reduced from 6 flights per week to 5 flights per week, a reduction of 1 flight.
• From March 17 (Monday), Asiana Airlines will separately notify customers who have already booked the affected flights about the revised flight schedules and will post related notices on its official website. Subsequently, the airline will provide support for destination and date changes, waive refund and reissue fees, and offer alternative flights with other airlines based on customer requests.
• Furthermore, Asiana Airlines has prepared compensation policies for losses due to flight schedule changes and for customers affected by flight cancellations on the reduced routes, aiming to minimize inconvenience.
• For customers who purchased tickets through travel agencies or online travel platforms, refunds and reservation changes will be processed through the point of purchase. An Asiana Airlines representative stated, "We apologize for the inconvenience caused to our customers."
• "We plan to actively support customers by changing reservations to their preferred schedules or providing alternative flights with other airlines to ensure their travel plans proceed smoothly."

2) Global Air Cargo Demand and Freight Rates Stabilize: Europe-bound Volumes from Korea Decrease by 11%

• The global air cargo market is showing a stable trend in demand and rates.
• In the face of rapidly changing geopolitical and trade environments, the total tonnage worldwide in Week 10 (March 3-9) remained stable compared to the previous week, with a year-on-year (YoY) increase of +2%.
• Notably, the allowable weight for rates from Asia-Pacific origins rose by an additional +5% week-on-week (WoW), approaching levels seen in mid-January after fluctuations during the Lunar New Year (LNY) period.However, this increase in cargo volume from the Asia-Pacific region was offset by declines in other regions: Latin America (-9%, WoW), Europe (-3%), North America (-2%), the Middle East and South Asia (MESA, -1%), and Africa (-1%).
• The two-week average tonnage from Weeks 9 and 10 showed an increase of about +4% compared to the previous year, driven by +8% growth from Asia-Pacific origins.
• Consequently, the global average spot rate in Week 10 remained stable at $2.55 per kilogram compared to the previous week, although rates from Asia-Pacific origins dropped by -1%. Still, they increased by +8% year-on-year, with Asia-Pacific spot rates up by +11%.
• Looking more closely at the Asia-Pacific region, average spot rates from China and Hong Kong to the U.S. remained stable at $3.78 per kilogram in Week 10, with cargo volumes recovering to levels seen in mid to late January.
• Cargo volumes from Asia-Pacific to Europe rebounded by +4% in Week 10 compared to the previous week, driven by increases from major markets such as China (+5%), Hong Kong (+6%), Japan (+7%), Taiwan (+7%), Vietnam (+3%), Thailand (+9%), and Singapore (+9%). However, Korea saw a significant decline of -11% in cargo volume, correlating with a reduction in cargo capacity from Korea during the same week.
• As a result, the average spot rate from Asia-Pacific to Europe also dropped by -3% to $3.91 per kilogram in Week 10, primarily due to rate decreases in China (-5%), Hong Kong (-2%), and Vietnam (-7%).

3)  World Trade Will Grow Despite U.S. Tariff Wars: DHL Trade Atlas 2025 Report

• Despite ongoing U.S. tariff policies and geopolitical tensions, global trade is experiencing stronger growth than expected.
• According to the "DHL Trade Atlas 2025" report, global trade is projected to recover in 2024 and grow at a faster pace than in the past decade until 2029. This trend is supported by the reality that the U.S. finds it difficult to completely exclude China from its supply chain.
• Even as trade conflicts between the U.S. and China intensify, the report points out that the U.S. reliance on Chinese products has not significantly decreased. In 2016, direct trade between the U.S. and China accounted for 3.5% of global trade, but this slightly decreased to 2.6% in the first nine months of 2024. However, the U.S. still imports from China at a rate similar to the global average, and considering indirect imports through third countries and the use of Chinese components, the reliance is even higher. This indicates that China remains irreplaceable in supplying key intermediate goods such as semiconductors and electronics.
• While U.S. tariff policies have been further strengthened since Donald Trump's re-election, the report forecasts that even if all tariffs he campaigned for are implemented and other countries retaliate, global trade growth will not cease. However, the pace of growth may significantly slow. Logistics experts analyze that attempts to completely exclude China will lead to supply chain inefficiencies and increased costs, with clear limitations as a short-term alternative.
• Notably, India, Vietnam, Indonesia, and the Philippines are expected to lead in trade growth rates and volumes by 2029, emerging as new production hubs in Asia and gaining attention as alternative routes for tariff evasion.
• The geopolitical conflict between the U.S. and China is accelerating supply chain diversification. Companies are spreading risks through friendshoring and multi-sourcing, emphasizing the need to manage logistics costs and efficiency. For example, while direct trade between the U.S. and China has decreased in 2024, indirect trade through third countries has increased, indicating a rise in supply chain complexity.

4) Longest-serving CEO of LCC, Jeong Hong-geun, T'way Airlines CEO, to resign on March 31 - Next CEO to be appointed from candidates recommended by Daemyung Sono, a former Korean Air executive.

• Jeong Hong-geun (67), the longest-serving CEO of a domestic low-cost carrier (LCC) who has led T'way Airlines for nearly a decade, will conclude his term at the end of this month.
• The new CEO is expected to be selected from among candidates recommended by Daemyung Sono Group during the regular shareholders' meeting on the 31st.
• Jeong joined T'way Airlines in 2013, initially serving as the head of the Sales Service Division, and later became the head of the Japan Regional Headquarters before being appointed CEO in December of that year. He has overseen significant developments including the company's initial public offering (IPO) in 2018, the opening of the first LCC-owned safety training center in 2020, the first LCC service from Incheon to Sydney in 2022, and plans for expansion into Europe in 2024.
• Having served three consecutive terms, Jeong has maintained his position for over nine years, making him the longest-serving CEO among the heads of nine domestic LCCs. Initially, there were speculations in the aviation industry about the possibility of Jeong being re-elected for another term to ensure stable company operations, but he is now on the path to resignation.
• The next CEO is expected to be one of the three candidates for the new internal director position recommended by Daemyung Sono Group, the "new owner."
• All candidates are currently affiliated with Sono International: Lee Sang-yoon (51), head of the Aviation Business Task Force; Ahn Woo-jin (50), head of Sales and Marketing; and Seo Dong-bin (49), responsible for the Aviation Business Task Force.
• Lee has over 20 years of experience at Korean Air in various roles including maintenance, human resources, and policy planning. Ahn worked at Korean Air for 12 years in domestic route analysis and sales planning before moving to Sono International in 2015. Seo has a background working at Korean Air and Jin Air from 2003 to 2010.
• An industry insider noted, "T'way Airlines is interpreting the need to appoint a CEO who can communicate smoothly with Korean Air, given their close cooperation through the transfer of European routes, crew dispatch, and aircraft leasing."

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