Air Cargo Boom Sparks Fears of Freighter Market Oversupply and a Potential 'Bubble'
The global air cargo industry is facing concerns of a potential market bubble due to an unprecedented surge in freighter capacity. A massive wave of orders for new-build cargo jets from Boeing and Airbus, combined with a boom in passenger-to-freighter conversions, is flooding the market. Analysts warn this rapid expansion could lead to significant oversupply, putting downward pressure on lease rates and aircraft values. While driven by e-commerce growth, there are growing doubts whether demand can absorb the sheer volume of new capacity entering service. This situation creates significant financial risk for airlines, lessors, and manufacturers heavily invested in the freighter sector.
Official Source: https://theloadstar.com/too-much-too-fast/