Airfreight Insider Daily Briefing – June 3, 2025
Welcome to today’s briefing, where we provide logistics professionals with a concise overview of the latest developments shaping the air cargo and aviation sectors worldwide.
Digital Transformation & Sustainability: Air France KLM Cargo’s Milestone
Air France KLM Martinair Cargo has successfully completed a comprehensive five-year digital and organizational transformation journey initiated in 2020 amidst the Covid-19 crisis. The project aimed to bolster the airline’s commercial strategy, enrich customer experience, and advance its sustainability agenda — all central to reaffirming its competitive edge in a rapidly evolving air cargo landscape. This milestone highlights how legacy carriers continue to innovate in response to pandemic-induced disruptions.
Labour Challenges Escalate: Verdi Strikes Impact Major Logistics Hubs
Labour unrest punctuates the European logistics sector this week. Tarif negotiations between union Verdi and the Frasec companies stalled with no agreement reached; talks are set to resume on June 12. Meanwhile, Verdi has announced a three-day strike starting Wednesday at DHL’s major freight hub in Leipzig, following similarly unsuccessful negotiations. These growing industrial actions signal mounting pressure on freight operations at crucial gateways.
Capacity and Demand: Mixed Signals Across Regions
Air cargo capacity overall declined in April and early May compared to last year, driven largely by freighter cancellations. Intra-Asia traffic remains weak, but providers like Dimerco anticipate a pick-up in demand starting mid-June, accompanied by gradual rate increases on key China–US routes. Contrastingly, IATA recently lowered its global air freight growth forecast for 2025, projecting only marginal volume increases (approximately 69 million tonnes vs. an earlier 72.5 million), reflecting ongoing market softness amid economic uncertainty.
Strategic Moves in Interlining and Partnerships
Major carriers continue to forge new interline agreements to expand network connectivity. Air India has added four new partners—Air Baltic, Bulgaria Air, Cyprus Airways, and Uzbekistan Airways—broadening its reach into the Baltics, Eastern Europe, and Central Asia with 16 new destinations across six countries. Additionally, Plus Ultra and ITA Airways have agreed to cooperate, enabling smooth one-ticket journeys for Latin America-Europe travelers via Madrid and Rome hubs.
Market Rivalries Heat Up: Kuehne + Nagel and DHL Aim to Outpace DSV
Amid the ongoing Schenker integration, logistics giants Kuehne + Nagel and DHL Global Forwarding feel an urgent need to defend market share and earnings throughout the second half of 2025. Observers note increasing competition and strategic positioning, anticipating that any early mistakes by DSV could be exploited aggressively by its rivals.
Infrastructure & Innovation Spotlight
- Frankfurt’s Green Leap: After years of development, Ineratec has launched its Power-to-Liquid (PTL) e-fuel production plant in Frankfurt, a project that could significantly reduce aviation’s carbon footprint and represent a transformative step for sustainable air transport.
- Hilton Düsseldorf’s Makeover: The hotel completed an €18 million renovation of all 375 rooms, public spaces, and meeting facilities — a move that reflects the broader industry trend of enhancing ground-side infrastructure to attract business and leisure travelers.
Operational Challenges and Safety Concerns
A Lufthansa Boeing 787 aborted its takeoff in India after initial reports suggested a landing gear issue. More recent investigations reveal that unsecured galley equipment posing injury risks to crew members was the primary cause. The incident underscores the ongoing operational challenges airlines face amid growing international expansion, especially in high-growth markets like India.
Regulatory and Political Developments
The European Commission banned all airlines certified in Suriname and Tanzania from EU airspace due to failure to meet international safety standards, adding pressure on carriers from these regions. Meanwhile, political instability in the Netherlands has cast uncertainty over the aviation sector following the collapse of the ruling coalition, which could influence infrastructure policies and regulatory frameworks going forward.
Industry Updates in Brief
- FAA plans to gradually ease flight caps at Newark Airport starting next week, aiming to reboot operations safely after previous congestion-related restrictions.
- Airbus reportedly delivered 51 aircraft in May but continues to face production delays similar to Boeing, hampering efforts to meet ambitious shipment targets.
- Major U.S. airlines are pushing back against proposed legislation aimed at reducing credit card fees, fearing significant impacts on their lucrative loyalty programs.
- A rather unusual hiccup at Airbus’s Mirabel plant: a family of raccoons has taken residence, causing minor damage to an A220 airframe under production.
- Wizz Air’s network strategy remains dynamic, with Network Manager Piotr Trawka emphasizing the importance of targeting profitable routes even before they gain widespread attention.
- Chapman Freeborn announces new leadership appointments for Europe, including Isidro Nuñez Oñate as Senior Charter Manager for the DACH region, reinforcing its regional market focus.
- For travelers, Southeast Europe offers attractive budget-friendly holiday options this summer as price levels remain comparatively low.
That concludes today’s briefing. Stay tuned for the latest video analysis on our Youtube channel, and follow us for ongoing insights on airfreight market shifts, capacity developments, and operational trends.
Your Editor-in-Chief,
Airfreight Insider