When the pandemic hit in early 2020, air travel came to a near halt. By April, more than half of the world’s passenger jets were parked. Those 16,000 planes also carry roughly half of the world’s air cargo, over 52 million metric tons of goods every year.
Cargo is typically only a small percentage of airline revenue, but it became a lifeline for Alaska Airlines, American, United and others as passengers stayed home under lockdown orders.
The air cargo market boomed and prices soared as consumers turned to e-commerce giants like Amazon to shop from home. Amazon sales surged 44% in Q1 2021 compared to 2020. Cargo’s share in total airline revenue almost quadrupled between 2016 and 2021.
In response, the world’s two biggest plane manufacturers started making cargo-only versions of their newest wide-body aircraft: the Boeing 777x and the Airbus A350. Boeing’s freight plane sales hit a new record in 2021 and expects an 80% increase in the global freighter fleet through 2041.
But as the global economy slows, is this growth in air cargo sustainable? Watch the video to learn more.
Chapters:
How air cargo works - 02:54
Pandemic shift - 06:16
E-commerce - 7:49
Demand - 09:13
Outlook - 11:32
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