November proved to a bit more difficult for high-performing Delta Air Lines, but it should see increased business from South America soon as it cements ties with LATAM.
Lufthansa Airlines is being called out by the FAA for allegedly going behind its back to operate at two U.S. airports without approval. Agencies don’t like it when someone tries to deceive them.
Logging onto an air cargo web site to book space for your shipment is so 2010s. Forwarders and airlines looking for speed and efficiency are plugging directly into each other’s systems to match loads.
More substantive talks could ensue in the four-year-old labor saga between Atlas Air and its pilots’ union after a federal appeals court ruled the union must abide by arbitration procedures.
API, or application programming interface, may soon become a common three-letter word in the air cargo space by making the booking experience similar to shopping on Amazon.
CHICAGO – After transforming its under-performing passenger operation over the past decade into one of the best managed and profitable global carriers, Delta Air Lines [NYSE: DAL] is now focused on improving other aspects of its business, including cargo. The company’s capital expenditures in cargo-related technology and systems are paying off in improved service and […]
Shippers will have more reason to “luv” Southwest Airlines when they get the same treatment as passenger baggage for tracking cargo with bar codes.
CHICAGO – The technology transformation that’s underway in freight transportation is badly needed to eliminate billions of dollars in annual waste and improve service for shippers and carriers of all sizes, in the same way that consumers have been empowered by shopping online, Shelley Simpson, chief commercial officer at intermodal transportation provider J.B. Hunt, said […]
The latest statistics from airlines and airports reinforce what we already know: The air freight market is in a protracted recession. But filtering the data for seasonal fluctuations paints a slightly more optimistic picture. September marked the 11th consecutive month of year-over-year declines in freight volumes, the longest period in a decade. Freight volume, measured […]
Canadian airlines, already facing a pilot shortage, now face higher labor costs associated with new pilot work rules.
Operating profit for Lufthansa Group dipped slightly in the third quarter from a year ago in the face of higher fuel costs and subpar performance at Austrian Airlines, Brussels Airlines and Lufthansa Cargo, which also announced plans Thursday to purchase two more Boeing 777 freighters. Lufthansa achieved a net profit of 1.15 billion euros ($1.27 […]
Air Transport Services Group (NASDAQ: ATSG) reported a 219% increase in third-quarter operating profit of $105 million. The outsourced provider of air cargo services for Amazon.com’s Prime network and other customers generated $366 million in revenue, up 79% from the same period in 2018. The gains mostly came from one-time occurrences: earnings from operations benefited […]
GE [NYSE: GE] on Wednesday promoted Greg Conlon to president and CEO of its aviation finance and leasing arm to replace Alec Burger, who will continue as head of GE Capital and serve as chairman of GE Capital Aviation Services. The move comes after months of speculation that GE might attempt to sell GECAS as […]
Story updated 11/42019, 2:45 p.m. Canadian overnight air cargo provider Cargojet [TSE: CGJTF] increased its third-quarter adjusted pretax earnings by 24% to C$39.1 million ($29.7 million) compared to the same period in 2018, consistent with the nine-month growth rate. Revenues, excluding fuel surcharges, increased 2.4% to $85.4 million, powered by a 5.5% increase in domestic […]
American Airlines [NYSE: AAL] won’t have to make any major fleet decisions for at least six years after completing a $30 billion, multiyear modernization program, positioning American to significantly increase free cash flow and returns to shareholders, according to company executives. Since 2013, the Dallas-based airline has replaced nearly 500 aircraft and now has about […]
Updated at 8:40 p.m. Atlas Air Worldwide Holdings Inc. (NASDAQ: AAWW), buffeted by a weak global airfreight market exacerbated by trade disputes and disruptions from a labor dispute with its pilots, lost $879,000 in the fiscal third quarter from operations, compared with a $54.5 million operating profit in the same period a year ago. Operating […]
Delta Air Lines [NYSE: DAL] has teamed with on-demand delivery company Roadie to launch a door-to-door, cross-country shipping service for time-critical goods such as medical equipment, and automotive and industrial parts. It is the first U.S. passenger airline to offer turnkey, round-the-clock pickup and delivery service in a segment already covered well by courier services. […]
Correction: The story has been updated with correct figures for cargo revenue. The original story said cargo revenue increased 9% to $60 million, but that line item covers cargo and other revenue, such as from ancillary fees and terminal lounges. Alaska Air Group [NYSE: ALK] has caught an updraft after initial turbulence digesting its 2016 […]
Updated at 3:15 p.m. EST. Earnings call adds. Cargo business fell during a challenging third quarter for American Airlines [NASDAQ: AAL], which faced operational disruptions and higher costs from labor issues, weather and the grounding of the Boeing 737 MAX. As previewed, the Dallas-based carrier reported Thursday that cargo revenue fell 20% to $208 million […]
Union members belonging to the International Brotherhood of Teamsters have ratified a new 10-year contract with Air Canada. The airline said it was notified of the results by the union on Wednesday. The IBT represents the airline’s 700 U.S.-based employees, including air cargo workers. The long-term agreement, tentatively reached in mid-August, includes a number of […]
Delta Air Lines [NYSE: DAL] is selling $1.5 billion worth of bonds to help pay for its 20% stake in South American carrier LATAM Airlines, according to a prospectus filed with the Securities and Exchange Commission Wednesday afternoon. The Atlanta-based airline announced its intent four weeks ago to form a joint venture with LATAM to […]
Updated 6:32 p.m. Aircraft maker Boeing [NYSE: BA] is reporting sharply lower earnings for its fiscal third quarter as the company deals with the grounding of its new 737 MAX short-haul jet involved in two deadly crashes. The commercial airplanes unit experienced a 41% drop in revenues to $8.2 billion, reflecting lower 737 deliveries, according […]
Boeing Company’s stock [NYSE: BA] has fallen 32% since documents turned over to Congress and the U.S. Federal Aviation Administration on Oct. 17 revealed that a former Boeing test pilot kept quiet in 2016 about problems he encountered with the 737 MAX’s flight control system since blamed in two fatal crashes. The chief technical pilot […]
FedEx Express [NYSE: FDX] on Friday used an unmanned aerial vehicle instead of a truck for last-mile residential deliveries on behalf of pharmacy retailer Walgreens. The Oct. 18 deliveries were made by Wing, a subsidiary of Google parent company Alphabet, in Christianburg, Virginia, under a pilot program authorized by the U.S. Federal Aviation Administration (FAA). […]
The joint venture between Delta Airlines (NYSE: DAL) and LATAM Airlines (NYSE: LTM) proposed last month was motivated by synergies on the passenger side, but analysts also see attractive opportunities to extend cargo reach, make money and benefit shippers. Delta officials have not publicly discussed the potential to gain from each other’s cargo strengths and […]
Story updated at 5:01 p.m. to reflect correction for passenger costs. United Airlines [NASDAQ: UAL] expects to drive down growth in operating expenses starting next year by replacing smaller aircraft with larger ones, primarily on domestic routes. Third quarter cost per available seat mile (CASM), excluding fuel and non-core expenses, increased 2.1% year-over-year to 9.8 […]
Air Canada said Wednesday that it has removed the Boeing 737 MAX from its flying schedule until February 14 because ongoing regulatory uncertainty could cause problems as it launches a new reservation system. Transportation authorities around the world grounded the MAX, a more fuel-efficient update for the popular short-to-medium range jet, in March after two […]
This story was updated at 7:40 p.m. EST, 10/16/19. Correction also made for percent drop in Delta’s cargo revenue. United Airlines [NASDAQ: UAL] reported cargo revenue dipped 4.7% to $282 million year-over-year in the third quarter, but more than made up for it with passenger and ancillary revenue. Operating income soared 24.1% to $1.47 billion […]
DHL Express plans to invest 131 million euros ($144.5 million) to nearly triple the size of its package sort facility adjacent to South Korea’s Incheon International Airport to help keep up with the rapid rise of e-commerce shipments in the region. The upgrades will increase total handling volume by more than 150% and increase its […]
Large aircraft are included on the list of $7.5 billion worth of European imports that will be subject to new U.S. tariffs starting Oct. 18. That means U.S. airlines with orders for Airbus aircraft could pay more than expected. During Thursday’s (Oct. 10) earnings call with analysts, Delta Airlines [NYSE: DAL] CEO Ed Bastian expressed […]
The next FreightWaves Live event has added air cargo to the range of topics discussed, with a variety of expert speakers who can help attendees understand factors influencing today’s market. The conference is November 12-13 in Chicago at the McCormick Place convention center. The agenda is packed with content on freight brokerage, on-demand app-based freight […]
The Boeing Co.’s [NYSE: BA] board of directors late Friday afternoon replaced Dennis Muilenburg as chairman with independent director David Calhoun, but kept him in place as chief executive officer. In an October 11 statement, the aerospace and defense company said splitting the roles will enable Muilenburg to focus full time on running the company […]
Updated: 3:41 p.m. Correction: Cargo revenue dropped 17%. Representing $37 million less, not 37% drop. Delta Air Lines’ cargo revenue dropped 17% to $189 million in the third quarter and year-to-date is off 13% to $567 million compared to the same period last year due to lower volumes and yield, the company reported Thursday. Delta […]
American Airlines [NYSE: AAL]said it expects to begin phasing in the Boeing 737 MAX into service by mid-January, nearly nine months after aviation authorities grounded the plane for safety reasons. The Dallas-based airline said in a statement Oct. 9 that the Federal Aviation Administration will likely recertify the aircraft later this year and that it […]
The International Air Transport Association said Wednesday that overall global demand for airfreight declined at a faster rate in August than July, contracting 3.9% compared to 2.4% the month before. And international airfreight volume fell 4.6% year-over-year versus the 3.3% decline in the previous month. The July figure is a revision from the previously reported […]
Commercial airplane deliveries at The Boeing Co. [NYSE: BA] nose-dived by two-thirds in the third quarter compared to the same period in 2018 and by almost half year-to-date, according to figures released by the company Oct. 8. The plunge in sales is largely due to the March grounding by regulators of the next-generation 737 MAX […]
The Southwest Airlines Pilots Association on Monday sued The Boeing Co., [NYSE: BA]claiming the manufacturer engaged in fraud and that the grounding of the 737 MAX by regulators is costing its pilots millions of dollars in lost wages each month. In a complaint filed Oct. 7 in the District Court of Dallas County, Texas, the […]
An AN-12 freighter made an emergency landing Friday morning (Oct. 4) about a mile short of Lviv International Airport in Ukraine, killing five people, the State Emergency Service of Ukraine said. The plane, with eight people on board, was carrying automotive parts from Vigo Airport in Spain. Three people were transported to a local hospital […]
UPS is adding infrastructure capacity for its airline to keep up with demand for Next-Day air volume.
[Editor’s Note: The photo has been updated to reflect a plane currently in service] Delta Air Lines’ [NYSE: DAL] cargo volume fell 10.5% in September to 167.8 million freight ton miles, in line with the year-to-date fall of 9% to 1.5 billion freight ton miles, the Atlanta-based carrier reported on Oct. 2. The company is […]
Truck drivers trying to make deliveries to and from cargo warehouses at Los Angeles International Airport on Wednesday could experience delays from labor protests scheduled to occupy portions of surrounding roadways. The California local of the Service Employees International Union is organizing a demonstration to highlight how developers and big corporations are reaping financial benefits […]
Taken by themselves, recent safety concerns with Boeing aircraft might be seen as part of normal checks and balances. But in the wake of the 737 MAX accidents, any safety question is receiving extra public scrutiny.
Delta is making a big play for Latin America, a region that is close to its base and where it sees the most growth potential and return on investment.
Delta Air Lines [NYSE: DAL] plans to take a 20 percent ownership of LATAM Airlines [NYSE: LTM] with a $1.9 billion investment in the Chilean-based airline that positions it to make inroads against American Airlines’ in Latin America. Both companies said late Thursday afternoon (Sept. 26) the new partnership would provide passengers greater global connectivity […]
No short-term relief for cargo congestion at LAX is coming from infrastructure upgrades, so companies are looking at process improvements to speed up cargo hand-offs.
Antiquated infrastructure, rising cargo volumes and poor logistics coordination are hindering efficient cargo transfers at L.os Angeles International Airport, raising costs for stakeholders.
Airbus has elevated its 20-year demand forecast for all-cargo aircraft, saying the market will need 2,800 specialized units to handle growth in international trade and e-commerce, 400 more than it estimated last year. The European aircraft manufacturer predicts air cargo will double by 2038 based on a compound annual growth rate (CAGR) of 3.6%, up […]
Forest debris buildup has been blamed for fueling many wildfires in the West. Delta Air Lines [NYSE: DAL] hopes it can soon fuel its jet engines. The Atlanta-based carrier said it is investing $2 million to study the feasibility of a facility that can produce aviation biofuel from wood residue – tree trimmings, branches and […]
The halt in vehicle production at General Motors [NYSE: GM] plants on Sept. 16 over a labor dispute is expected to have ripple effects throughout the automakers’ supply chain, but experts say the severity of any business interruption will depend on the duration of the strike by the United Auto Workers. The most immediate casualty […]
Amazon.com Inc. (NASDAQ:AMZN) has transferred flying responsibility for two leased Boeing 767-300 freighters from Atlas Air Worldwide to Air Transport International, a charter airline owned by Air Transport Services Group (ATSG), Amazon and ATSG officials confirmed. Both companies lease and operate planes on behalf of the Amazon Air network, which the e-commerce giant launched in […]
Hurricane Dorian’s devastation of Grand Bahamas Island and the Abaco Islands is so widespread that logistics providers lack basic infrastructure to deliver relief supplies, leading many shipments of food and other products to go to waste. Prioritizing what resources are needed and coordinating government and private sector shipments is challenging after any natural disaster, but […]
A Convair CV-440 cargo plane crashed outside Toledo Express Airport in Ohio Wednesday (Sept. 11) morning, killing the two people on board, according to the Ohio State Highway Patrol. The Federal Aviation Administration and the National Transportation Safety Board are also investigating the accident. The plane slammed into several parked trucks and was engulfed in […]
U.S. Customs officers at Los Angeles International Airport recently confiscated 28 counterfeit National Basketball Association championship rings with a retail value of $560,000, the agency said Sept. 11. The officers discovered the jewelry while examining an air cargo package that arrived from China. Import specialists at the Consumer Products and Mass Merchandising Center of Excellence […]
Boeing Chairman and CEO Dennis Muilenburg on Wednesday expressed confidence the company would quickly overcome recent troubles with its new 737 MAX and 777X airplanes, but worried escalating trade tensions between the U.S. and China could undercut future sales of 767, 777 and 787 aircraft in its largest market. “The lack of a trade deal […]
News that a key test on Boeing’s next-generation 777 wide-body jetliner went awry last week raised questions about possible production and delivery delays, but for all-cargo fleets, the glitch is a non-issue because no freighter variant is planned right now. Still, the plane provides great value as a cargo hauler because its huge lower deck […]
Air Transport Services Group, a major provider of midsize leased cargo aircraft and transportation services for customers such as DHL and Amazon, named current Chief Operating Officer Richard F. Corrado president, effective Sept. 16. Joseph C. Hete will relinquish his role as president but remain as chief executive and a board director, the company said […]
Logistics providers have been able to plan around the British Airways labor disruption and avoid cargo delays for their clients.
The Boeing 737 MAX grounding has strained operations and finances this year at several North American airlines, but executives caution the jetliner needs to be reintroduced to fleets in a gradual, coordinated way once authorities certify it to fly so they have time to build passenger bookings and conduct their own tests. A controlled rollout […]
Air freight volume declined 3.2% in July, to about 20.5 billion freight ton kilometers, compared to the same month a year earlier, the International Air Transport Association reported. It is the ninth straight month of volume decline for the air cargo industry, reflecting economic weakness in key global markets and the pullback in imports and […]
Airlines, shipping lines, and cruise lines are beginning to arrive in the Bahamas with large shipments of relief supplies.
Logistics providers and non-governmental relief groups are facing difficulties getting large quantities of emergency supplies and personnel into the Bahamas because the runways and ports are severely damaged.
Big box retailers rush pre-positioned goods to stores in Southeast to help customers cope with Hurricane Dorian.
Logistics and transport sector ramps up contingency plans for Hurricane Dorian, while continuing to operate until better forecasts are available.
Express air is the preferred mode for counterfeit and opioid smugglers, and U.S. Customs is having trouble keeping up with the volume.
The Trade Facilitation and Trade Enforcement Act of 2015, also known as the Customs reauthorization bill, which went into effect in March, raised the de minimus level to $800 from $200. De minimus refers to low-value shipments listed on a freight carrier’s manifest that are admitted without taxes, tariffs or formal customs procedures. The reduced […]
Cargo pre-inspection part of effort to transform U.S., Mexico customs clearance.