passenger airlines

Pandemic taught passenger airlines lesson about the value of freight

Close up of white jet staring right at nose and cockpit on the ground.

The director general of the International Air Transport Association acknowledged Monday that the organization has not seriously valued cargo throughout its history but said the pandemic taught airline executives that shipping goods can be profitable with more focused service.

“People probably haven’t fully appreciated the importance of cargo to the financial model of a lot of airlines,” Willie Walsh, the former chief executive of British Airways and International Airlines Group, said during a...

https://www.freightwaves.com/news/pandemic-taught-passenger-airlines-lesson-about-the-value-of-freight

Boutique French airline ventures into air cargo

An anthracite and blue plane flies through a blue sky.

Many passenger airlines have expanded cargo services out of necessity since the start of the COVID pandemic. Now, a boutique French carrier is leveraging the crisis to start cargo operations from scratch.

La Compagnie, which offers exclusively business-class flights between New York and Paris, recently began hauling cargo in the belly of its Airbus A321 Long Range aircraft for the first time as it looks to capture ancillary business from a sector with high yields amid a shortage of freight...

https://www.freightwaves.com/news/boutique-french-airline-ventures-into-air-cargo

Growth in air cargo volume hits 4-year high

A white plane takes off with view facing the aircraft.

Air cargo volumes increased 9.9% in June, capping the strongest annual first half for carriers since 2017 and giving the industry momentum heading into the traditional holiday shipping season, the International Air Transport Association reported Wednesday.

The news was less sanguine for companies that ship goods and are looking for more space in a crowded market. A large portion of the lift they need comes from passenger aircraft, with cargo riding in the lower deck. Passenger capacity...

https://www.freightwaves.com/news/growth-in-air-cargo-volume-hits-4-year-high

Air Canada sets record for cargo revenue in second quarter

Front half of a white Air Canada jet, view from the side, with a cargo pallet in the foreground.

Hampered by strict government border restrictions, Air Canada disappointed investors with a US$918.3 million loss in the second quarter, but the cargo division did better than expected with a record $274 million in revenue.

Cargo sales for the period ending June 30 were 33% greater than in 2020 and double the amount in 2019, before the pandemic.

Air Canada (OTCUS: ACDVF) was one of the most aggressive passenger carriers to shift to dedicated cargo operations when global cargo capacity plummeted...

https://www.freightwaves.com/news/air-canada-sets-record-for-cargo-revenue-in-second-quarter

FAA gives passenger airlines 6-month extension for cabin cargo

Workers put boxes in yellow seat bags in the passenger cabin of a plane.

The Federal Aviation Administration has extended until the end of the year the exemption for U.S. commercial airlines to carry cargo in the main cabin when passengers are not present, citing an ongoing need to provide extra cargo lift capability while passenger traffic remains below pre-pandemic levels.

The trade group Airlines for America had requested a one-year extension for cargo-in-cabin flights, but the agency said in a Friday ruling that air travel is returning to normal and could soon...

https://www.freightwaves.com/news/faa-gives-passenger-airlines-6-month-extension-for-cabin-cargo

Airlines to lose $48B despite banner year for cargo

Brown tail of UPS jet in foreground, cargo containers and American Airlines cargo warehouse in background.

Airlines will rake in record-high cargo revenues in 2021 on double-digit growth in shipping demand, but lose $47.7 billion because of weak air travel as most countries struggle with controlling virus variants and vaccinating populations, the International Air Transport Association said Wednesday.

The trade group downgraded its outlook from December, when it projected a $38 billion loss, with the net profit margin falling to minus 10.4% from minus 7.1%. The revised forecast represents a big...

https://s29755.pcdn.co/news/airlines-to-lose-48b-despite-banner-year-for-cargo

Cargo, new passenger demand brighten United Airlines’ outlook

A large United Airlines jet, white with blue tail, flies high in the sky.

United Airlines (NASDAQ: UAL) increased cargo revenue by 74% in the first quarter compared to the same period in 2019, and officials expressed optimism about a near-term return to profitability despite an adjusted net loss of $2.4 billion as vaccinated customers rush to travel again after a year of isolation.

Cargo continues to be one of United’s bright spots during the pandemic. The airline’s prolific use of passenger aircraft as mini-freighters helped it pull in $497 million in the first...

https://s29755.pcdn.co/news/cargo-new-passenger-demand-brighten-united-airlines-outlook

Delta sees bright skies ahead after $1.2B Q1 loss

A white Delta jet takes off.

Delta Air Lines (NYSE: DAL) recorded an adjusted $2.3 billion loss in the first quarter but significantly grew cargo revenue and said recent improvement in domestic leisure demand has it on a path to break even on an operating basis by midyear. Without excluding special items, the loss was $1.2 billion.

The adjusted loss of $3.55 per share fell below analysts’ consensus forecast of -$3.10 per share because of virus-caused downturns in January and February. Delta’s adjusted operating revenue of...

https://www.freightwaves.com/news/delta-sees-bright-skies-ahead-after-12b-q1-loss

Analysts bullish on US airlines as travelers prepare for ‘jailbreak’

A small passenger jet parked at the gate on a sunny morning, looking straight out at cockpit.

The U.S. domestic airline industry is moving toward recovery from the pandemic faster than  previously estimated, although changes to route networks will make some destinations more difficult to reach for passengers and cargo shippers, according to analysts and executives. 

Consumer eagerness to travel has some carriers predicting they will soon break even from an operating standpoint and some market analysts saying consensus growth projections are too conservative. 

A report on Monday from...

https://s29755.pcdn.co/news/analysts-bullish-on-us-airlines-as-travelers-prepare-for-jailbreak

Who is king of cargo-only passenger flights?

A giant white Emirates jumbo jet in front of a row of parked aircraft with tails visible; right side of split screen is cargo stored in passenger seats.

When COVID decimated passenger travel last year, airlines pivoted to air cargo like never before, turning many idle aircraft into temporary freighters. It was an innovation born of necessity that helped bring in much-needed cash. 

Shippers were desperate when nearly all widebody aircraft were eliminated from service a year ago, because they carry more than 50% of total air cargo in the hold below people’s feet. Big freighters couldn’t make up the difference and airfreight rates skyrocketed. High...

https://www.freightwaves.com/news/who-is-king-of-cargo-only-passenger-flights

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