How Air Cargo Kept American Airlines And Others Afloat During The Pandemic

How air cargo kept american airlines and others afloat during the pandemic

CNBC published this video item, entitled “How Air Cargo Kept American Airlines And Others Afloat During The Pandemic” – below is their description.

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

CNBC YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.


About This Source - CNBC

CNBC is an American pay television business news channel owned by NBCUniversal News Group, a division of NBCUniversal, with both indirectly owned by Comcast. Headquartered in Englewood Cliffs, New Jersey, the network primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

Recent from CNBC:

This business is at the center of the $644 billion enterprise of reselling returned items #Shorts

Why Silicon Valley’s Betting Big On Machine-Made Art

BTS members are joining the military #Shorts

In This Story: American Airlines

American Airlines, Inc. is a major American airline headquartered in Fort Worth, Texas. It is the world’s largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile.

Parent company American Airlines Group
Traded as Nasdaq: AAL

4 Recent Items: American Airlines

NFL Star Odell Beckham Jr. Forced Off Flight For Disobeying Flight Crew

Ryan Garcia – the story so far – complete biography

American Airlines is ‘increasing their costs’ with labor talks: Pilot union spokesperson

American Airlines stock has a bumpy landing despite a Q3 earnings beat

In This Story: Boeing

The Boeing Company (LON: BOE) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services.

3 Recent Items: Boeing

Boeing stock soars following United Airlines jet order

Final Trades: Boeing, Easterly, Honeywell & more

Western sanctions hit Russian aviation sector | DW News

In This Story: Lockdown

During the 2020 Covid-19 epidemic, lockdown has come to mean the practice of attempting to control transmission of the virus by means of restricting people’s movement and activities on a broad scale, usually on a national or state-wide basis.

3 Recent Items: Lockdown

Sydney zoo releases footage of 5 lions escaping from enclosure amid ongoing investigation

China sees largest protests in decades over zero-COVID policy

What China’s Protests Mean for Crypto

Leave a Comment

We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.