'Preighter' use in aviation to end, but air cargo has had a 'good' pandemic

EASA has ended its approval of transporting cargo in passenger cabins. The European safety regulator had authorised this, in addition to belly space, in 2020 at the onset of the COVID-19 crisis. It concluded that the logistical challenges that arose due to the pandemic no longer exist to the same extent.

Before COVID-19 'preighters' (passenger aircraft used to carry freight) did not really exist, but they accounted for 25% of global air cargo traffic in 2Q2020. Their use supplied essential freight capacity, but did not fully replace the belly space in grounded passenger aircraft during the crisis.

Nevertheless, global air cargo traffic comfortably exceeded constrained capacity throughout 2021, while capacity shortages benefitted cargo yield and load factor. Demand has softened more recently, but Jun-2022 CTKs were still +0.8% up on Jun-2019 (while RPKs were -29.2%).

Air cargo increased its share of airline revenue from 12% in 2019 to 40% in 2021. IATA forecasts that this will ease back to 24% in 2022, but air cargo could well emerge from the pandemic with its position structurally enhanced.