Carriers report record cargo revenues

We have seen continual air cargo growth over the last 24 months, due in part to favorable economic conditions: the rise in global trade goods, low inventory-to-sales ratio, demand for personal protective equipment (PPE), and pharma shipments. The cost competitiveness of air cargo in comparison to sea-container shipping also remains favorable. Combination carriers typically focus on their passenger business since cargo generally accounts for less than 10% of revenues, with the exception of Gulf and some major Asian carriers, such as Cathay Pacific, China Airlines and Korean Air, which report shares in the 15% to 20% range. Revenue on the rise The lack of air freight capacity during the COVID-19 pandemic led to an increase in yields and revenues, which provided support to combination carriers and those with passenger widebody cargo capacity in the face of declining passenger revenues. Air freight rates in December 2021 were about 150% higher than in 2019, and cargo flights made up 36% and 32% of all airline revenue globally in 2020 and 2021, respectively. Leading long-haul carriers posted cargo record revenues during the past two years, and cargo accounted for about 40% of airline revenues in 2021, up from 24% in 2020. We have analyzed a total of 32 carriers, some of which are operating both passenger and freighter fleets, and others operating passenger aircraft while leveraging their widebody belly capacity to transport cargo. The interactive display contains two dashboards that show: Historical cargo revenue (in billions) by carrier Historical cargo revenue share as a percentage of total revenues by carrier

Data is current as of July 10, 2022, and includes all financial figures through the end of 2021 and historical data back to 2017. All carriers analyzed have increased their share of cargo revenue as a percentage of total revenue recorded, except for Thai Airways. In fact, cargo accounted for more than 75% of all revenues in 2021 among carriers like Singapore Airlines, EVA Air, Korean Air and China Airlines. This figure matches the slower return of belly capacity in the Asia-Pacific region and shows the weakest recovery performance , mainly due to slow domestic and stagnant international traffic levels. These carriers have and will continue to focus on cargo operations while monitoring developments in the passenger market and working together to maximize operational profits. Opportunities abound The pandemic has given an opportunity to other traditional carriers with no freighter fleets to invest in cargo, including British Airways, Iberia, Virgin Atlantic, American Airlines and Unites Airlines. Their investments have included the replacement of technology systems, launch of new shipping services and products, and the expansion and modernization of their cargo facilities. With trans-Atlantic belly capacity almost back to pre-pandemic levels and new routes opening, these carriers will continue to benefit from high cargo demand and higher capacity on key trade lanes between North America and Europe. Air Canada also posted record revenues in 2021, and its cargo business accounted for about 23% of all its revenues. The airline's fleet of dedicated -767 freighters will ensure that it remains an industry leader in the coming years. While the analyzed carriers continue to capitalize on near-term cargo demand, some questions remain: How long will this momentum last? Have these carriers reached their all-time-high cargo revenues? Will airlines keep investing and growing their cargo businesses or will they go back to passenger-centric operations?

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Carriers report record cargo revenues

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Carriers report record cargo revenues

Cargo accounted for 40% of airline revenues in 2021, up 16% YoY

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Freighter order backlog surges, prompting fears of a bubble

US airfreight may decline in 2H 2022

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