b'FeaturesCovid-19 Impact on Airfreight IndustryPart II2019 - Since the start of global Covid-19 outbreak, we have sincewitnessed unprecedented scale in travel bans, lockdownsandquarantines,causingmassivedisruptionsinglobaltrade and supply chains. Covid-19hasimpactedglobalaircargocapacityina35%dramaticfashion.Atitsworst,globalaircargocapacitywas reduced by 35%, but the situation is fast improving.:(i)In response to the air cargo capacity crunch, finding new(ii);(iii)sources of revenue and rebuilding their air cargo network,airlines were quick to respond with three key measures: (i) increasing utilization of freighter flights (ii) bringing olderfreighteraircraftoutofretirementand(iii)repurposingtheir passenger aircraft for cargo conveyance.100In increasing the aircraft payload to maximise cargo revenue,some airlines have taken unconventional approaches toB777ER50utilizing the passenger cabin by putting cargo on seats andinside overhead compartments. Since the start of the globalpandemic,some100passengerairlineshaveconvertedtheir aircraft for cargo-only conveyance. A few of the global hub airlines are offering a regular network of cargo-only510passenger flights. Emirates, for example, covers a network26% 1of 50 cargo destinations with their B777ER passenger fleet.Recently, airlines such as Air Canada, Lufthansa, EthiopianAirlines, Finnair and Icelandair have even gone to the extent(PPE)of modifying some of their widebody passenger aircraft into freighters with seats removal. In view of the above, by the week of 10 May, global air cargocapacityscontractionhasbeenreducedto26% year-on-year 1 . Some air trade lanes have improved more significantly than the others, with eastbound transpacific capacitystartingtoregistergrowthagainsttheyear before. Airlines have been pumping in more capacity in the eastbound transpacific route to serve the high demand of1Source: Seaburymedical supplies and Personal Protective Equipment (PPE).: Seabury Total Air Cargo Capacity Growth, 10-16 May 2020 vs 12-18 May 20192020510-162019512-18% YOY % growth%Represents volume and direction of trade flow +4-10 -10-59 -29-51 -29 -1-8 -5 -56 -23 -8 -5-82 -87 -57-13-23-31Global capacity decline: -26% Source: Seabury -26%: Seabury Changi Cargo Insight 3'