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 ecommerce 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 cargoonly versions of their newest widebody 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
Ecommerce 7:49
Demand 09:13
Outlook 11:32

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC
How Airlines Fly Cars, Sharks And Other Goods Under Passengers