Declining airline cargo revenue brings positive implications

Declining airline cargo revenue brings positive implications


An American Airlines 777​ is‌ loaded with cargo‌ at Philadelphia‍ International⁣ Airport.

Leslie⁣ Josephs/CNBC

Airlines’ cargo revenue ​is slumping. ‌That’s⁢ a​ sign ‌of ⁢good news for travel recovery.

Delta,‍ United and ‍American this‌ month each reported⁤ year-over-year ⁤declines of about 40% in ⁢their second-quarter⁣ cargo revenue.

For the first‍ half of ‌2023, ⁤Delta’s cargo⁤ business generated 1 million, ‌down from $561 ‍million ​in ⁣the first half⁣ of 2022,⁤ while American’s cargo unit brought in $420 million compared with $692 ‍million‌ in ‌the‍ first ‍six ⁢months ​of ‌last year.‌ United brought ⁣in $760⁢ million from cargo‌ so far⁢ this‌ year, ‌down ‌from $1.2 billion⁣ a ⁢year earlier.

Zoom In‌ IconArrows‍ pointing ⁤outwards

Meanwhile, airlines are reporting record ⁤revenue, if‌ not ​earnings,‌ thanks ⁤to the rebound ​in ​travel demand.​ That ‌means​ the business‌ impact ⁣of ‍cargo, which once⁢ helped ⁢prop ​up ⁤airlines’ ‌revenue​ during​ the‌ Covid pandemic travel plunge, has‍ faded.

Cargo‍ revenue at ‌United,⁢ which generates the⁢ most of ⁢that…

2023-07-20 ⁢16:42:22
Article from www.cnbc.com
rnrn

Exit mobile version