The chairman of Singapore Airlines (SIA) Cargo, Ng Chin Hwee, says that the air cargo industry is facing problems, but that his company plans to ride out the current slump.
"Fundamentally, there is a structural problem not with SIA Cargo, but cargo," Ng Chin Hwee tells analysts at a briefing on SIA's first half results for the fiscal year 2012/13.
Ng says the industry is in the midst of a "protracted form of slowdown" that is reducing cargo volumes, while yields are being depressed by overcapacity.
"Capacity in the market is based on a far more buoyant outlook when orders were made," he adds.
In light of the problems facing the industry, Ng says the carrier will continue to monitor conditions and make further capacity adjustments when required.
SIA Cargo recently announced it will remove one of its 13 Boeing 747-400 Freighters from service in January 2013 for nearly 18 months.
In the first half of the fiscal year 2012/13, SIA Cargo contributed a S$99 million ($80.8 million) loss to SIA Group's operating profit, widening the S$31 million loss it experienced over the same period a year ago.