Cargo

Cargo!  An interesting subject, and more complex and dynamic than what many people realize.  Despite a consumer’s personal experience when it comes to timely deliveries, companies pushing products are focused on customer service levels and delivery timelines and air cargo operators are required to manage those expectations.    

Cargo has been a lifeline for the aviation industry during COVID-19 especially for commercial aviation (Part 121). Before the pandemic, cargo typically made up around 12% of the sector’s total revenue and that number tripled in 2020.  It hasn’t slowed down. In 2021, while those numbers have somewhat leveled off, we have witnessed modest growth in 2022.  

There are two ways to carry air cargo.  One is in the hull of an aircraft known as air freighter. The second one that has become popular is a smaller aircraft that has had some or all seats removed to carry cargo in its cabin. This is known as a preighter.

In 2020, charter airline operators adjusted their aircraft to carry cargo.  However, in 2021, when travelers started to fly again, these airlines added seats back into their planes which gave some

charter operators an opportunity to take advantage of both markets. However, not all charter operators want to handle cargo. Many operators have spent a small fortune on the interior of the aircraft to attract business and leisure travelers and it may not be prudent to carry cargo on those aircraft.

Now bring us forward to 2022. With travel restrictions easing, airlines will be refocusing on passenger travel and the supply chain will still suffer.  The larger cargo operators such as DHL have reported significant increases in airfreight revenue in 2021. It is predicted that this will cause a shortage in capacity for air cargo of 12-13%.  So, in smaller markets where charter airlines are prominent, will this increase in volume get scooped up by preighters or will cargo companies increase their fleet size to offset the demand?   

Bottomline, the opportunity for air cargo will be strong for 2022.  As 135 cargo and preighter operators tighten up their processes for e-commerce cargo, this will give commercial airlines a serious run for their money should air travel slow down again.   

General Aviation cargo operators are at a turning point to expand their fleet and become the new standard in all markets including secondary markets. Charter and Go is addressing this market need by launching a charter management system for cargo operators in Q2 2022.

Pamela Huff – VP of Sales Strategy