United Airlines lost more than $2 billion in the third quarter, but the cargo division did its part to stabilize finances.
Asiana and Azul are taking cargo seriously in an unprecedented year for aviation. To capture greater cargo revenue, Asiana has replaced passenger seats with a novel freight pallet system. Azul is turning regional jets into cargo planes.
American Airlines cargo and passenger flights will shift to a new mega-airport in Beijing in March. Passenger demand will dictate how long cargo-only flights continue.
21 Air is a small cargo airline that wants to expand but can’t afford new aircraft. So it’s acting as a sales agent and partnering with others to get more freight business when shippers are desperate for airlift.
At airlines, cargo is typically the junior partner to passenger service. During COVID, the roles are reversed and United Airlines is using its cargo network to support more passenger service.
Cargo is no longer the stepchild at passenger airlines. Strong cargo sales have helped keep airlines afloat as revenues plunge during the coronavirus. Will we see airlines start to buy freighters to capitalize on cargo demand?
“Look, Mom, no seats!” That’s Korean Air saying it’s flying a passenger plane with the seats removed because it can make more money putting cargo on the floor.
If you’re an airline with the name Scoot, you’ve got to move fast. The Singapore carrier did that when it transitioned to cargo flights and removing passenger seats.
United Airlines’ early commitment to quasi-freighter operations as the coronavirus crisis grew has paid off financially. The airline is ramping up cargo operations even further during the third quarter.
Several passenger airlines have proven that cargo can be lucrative business during a pandemic with little travel. American Airlines quickly built a dedicated cargo operation but is now throwing more resources at the business as market conditions improve.
