Executive Briefings

Cargo Is 'Driving' the Airline Business and Possibly the Economy

This week I wanted to focus on air cargo, which is growing at a much faster pace than demand for passenger traffic. Airlines around the world are reporting double-digit growth in cargo in 2010 and are looking for joint ventures and new markets and are adding all-cargo aircraft to their fleets. To mention just a few, All Nippon reports cargo growth of 32.6 percent in September, and together with Hawaiian Airlines, has applied for U.S. authority for blanket cargo code sharing.

China Southern Airlines reports cargo growth of 34.6 percent in October; LAN reports cargo grew 49.4 percent in the third quarter of 2010, generating 28 percent of the total revenue for the airline. In the nine months, cargo revenue increased 48.4 percent to $910.6m, compared to passenger revenue growth in the period of 19 percent to $2,221.4 million. The "model airline" is adding three B767-300Fs by January 2011 and two B777Fs for delivery in 2012.

Cathay Pacific Airways and Air China are launching a joint cargo venture, with Cathay investing $256m in Air China's cargo arm. Whether they carry airfreight in the lower deck of passenger airlines or operate dedicated freighter aircraft, or both, the results are impressive. Miami Airport reports October year-to-date cargo increased 20.34 percent. Centurion and UPS grew 59 percent and 19 percent, respectively through October.

Source: Air Waves

This week I wanted to focus on air cargo, which is growing at a much faster pace than demand for passenger traffic. Airlines around the world are reporting double-digit growth in cargo in 2010 and are looking for joint ventures and new markets and are adding all-cargo aircraft to their fleets. To mention just a few, All Nippon reports cargo growth of 32.6 percent in September, and together with Hawaiian Airlines, has applied for U.S. authority for blanket cargo code sharing.

China Southern Airlines reports cargo growth of 34.6 percent in October; LAN reports cargo grew 49.4 percent in the third quarter of 2010, generating 28 percent of the total revenue for the airline. In the nine months, cargo revenue increased 48.4 percent to $910.6m, compared to passenger revenue growth in the period of 19 percent to $2,221.4 million. The "model airline" is adding three B767-300Fs by January 2011 and two B777Fs for delivery in 2012.

Cathay Pacific Airways and Air China are launching a joint cargo venture, with Cathay investing $256m in Air China's cargo arm. Whether they carry airfreight in the lower deck of passenger airlines or operate dedicated freighter aircraft, or both, the results are impressive. Miami Airport reports October year-to-date cargo increased 20.34 percent. Centurion and UPS grew 59 percent and 19 percent, respectively through October.

Source: Air Waves