A Look Inside the World of Air Freight

Global commerce is at an all-time high, and aviation is vital in transporting precious commodities from one end of the world to another. 

With this in mind, it makes sense that various cargo airlines are established globally. These carriers play a big part in helping the economies of their respective nations thrive. That said, let's further explore the world of air freight.

Lucrative Business

No bonus points for the definition; a cargo airline is, by no surprise, an airline dedicated to the transport of cargo by air. While many cargo airlines exist as independent entities, many cargo airlines exist as divisions of larger passenger airlines.

Cargo is a lucrative business, and this principle was heavily emphasized during the COVID-19 pandemic. As passenger traffic was at record lows worldwide, the opportunities to transport cargo became slimmer. 

This is because, with fewer passenger aircraft flying, there were fewer opportunities for businesses to transport cargo.

The attention shifted to cargo airlines, and the money started rolling in. Air freight rates rose as a consequence of the increased demand but decreased supply. Transatlantic cargo would normally cost $0.80 per kilogram, then increase to $2.50-4 per kilogram.

This boom was too much for passenger airlines to pass up, hence why we saw droves of passenger airlines temporarily convert passenger aircraft to cargo usage. Various carriers would remove the passenger seats and install space to carry large boxes and cargo.

Cargo Airline Operations

Coming out of the pandemic, the worldwide cargo "craze" has slowed significantly. However, that's not to say that this business does not continue to be important.

The rise of the internet and the continued popularity of e-commerce means that distributors depend heavily on airlines to transport goods quickly.

This is precisely why Amazon Prime Air came into existence a few years ago. Why pay other carriers to fly Amazon products when the firm could start its airline instead? 

Today, Prime Air is a rapidly growing airline that has contracted with carriers like Atlas Air, Air Transport International, Southern Air, and recently Hawaiian Airlines.

Cargo airlines, especially in the United States, strategically place their hubs in centrally-located cities, and it's not hard to guess why. By having a base in the middle of the country, you can access all corners of the country in relatively similar amounts of time.

As such, airlines like UPS, FedEx, Southern Air, and Prime Air have hubs across the central United States. UPS operates its two largest hubs in Louisville, Kentucky (SDF) and Rockford, Illinois (RFD). 

FedEx operates its SuperHub in Memphis, Tennessee (MEM) and National Hub in Indianapolis, Indiana (IND). Finally, Southern Air and Prime Air operate large bases in Cincinnati, Ohio (CVG).

Therefore, air cargo is the primary reason why when you click "next day air" or "one-day delivery", your package, in most cases, does not show up on your doorstep the next day after you purchase it.

Cargo airlines take pride in operating the most efficient fleets, just like passenger airlines do. However, many carriers continue operating older aircraft mainly because older planes are cheaper to buy. 

Even if maintenance issues might arise down the line, cargo airlines do not mind paying less to acquire older planes and spending more here and there to maintain such aircraft.

As industrial production and global trade, in addition to e-commerce, continue to grow, air cargo demand remains strong.

Boeing anticipates that total global air cargo traffic will more than double by 2041. This makes sense as with the global population continuing to grow, we will rely on cargo airlines a lot more to deliver precious goods all over the world to ensure that society's needs continue to be fulfilled.