A Boeing 747 cargo freighter belonging to the Atlas Air flies into the clouds after lifting off from Hong Kong Worldwide Airport, on 23 October 2017, in Hong Kong, Hong Kong.
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Not all airways are reeling from the coronavirus pandemic. Cargo airways are cashing in on the push for medical provides and different items, marking a reversal of fortunes for the sector on the heels of its worst year in a decade.
As passenger demand plunged whereas Covid-19 unfold across the globe, airways have saved about two-thirds of the world’s fleet of about 26,000 planes by means of mid-April, in line with U.Okay.-based aviation consulting agency Ascend by Cirium.
That meant a crunch for house as a result of passenger planes routinely carry the whole lot from mail to contemporary meals to prescribed drugs in plane bellies.
Air freight volumes worldwide dropped by greater than 15% in March from a yr earlier, however capability dropped 23%, the Worldwide Air Transport Affiliation stated.
Some cargo carriers are reaping the advantages.
Atlas Air Worldwide Holdings on Thursday stated it swung to a $23.four million revenue within the first quarter from a lack of practically $30 million in the identical interval a yr in the past. Executives have been upbeat about robust demand within the second quarter. Shares of the cargo airline that flies for Amazon and others have been up by about 6% in noon buying and selling and have risen by about 47% within the second quarter.
The corporate stated in a press release that it expects adjusted web revenue within the second quarter to rise as a lot as 50% from the primary quarter. It additionally introduced an settlement with its pilots for 10% pay will increase, after a protracted battle with their labor union.
Air Transport Services Group, one other Amazon contractor that additionally gives passenger charters, on Tuesday reported an almost 12% enhance in income within the first quarter from a yr earlier. Its inventory was barely down Thursday however up by about 16% within the second quarter to this point.
The outcomes are a stark distinction to the 4 largest U.S. passenger airways, which final month posted their first quarterly losses in years as U.S. journey demand dropped greater than 90%, a results of the virus and measures to maintain it at bay, like shelter-in-place orders.
These airways, nevertheless, have rapidly moved to function cargo-only flights dealing with a dearth of passengers. American, for instance, seeing a powerful demand for medical provides, in March flew its first scheduled flight carrying solely cargo since 1984.