Management consultants McKinsey & Company have warned that air freight will continue to be undersupplied for some time to come – but has urged airlines to bring back freighter capacity slowly.
While many have over the past ten years scaled back their cargo operations thanks to low rates, they’ve now seized the cargo lifeline. According to reports, the 12% that previously made up the sector’s total revenue, tripled last year.
Consultancy company Airline Analyst revealed that 21 (down from 77 in 2019) of the airlines around the world that disclosed their operating performance achieved positive operating profits for the third quarter of 2020, traditionally the industry’s most profitable quarter.
Among these 21 airlines, cargo revenue accounted for 49% of total revenues on average, says McKinsey.
Cargo yields reportedly increased by about 30% last year – but as travel begins to open as vaccination ramps up, more belly capacity will become available.
Airlines have, however, been advised to rather look at increasing their deployment of ‘preighters’, or passenger airplanes that are used to transport cargo.
“Airlines need to be agile,” says McKinsey. “Rushing headlong into developing and maintaining a large freighter fleet again comes with risk.”
