Why don't American passenger airlines operate dedicated cargo flights any more?Why do some airlines operate...

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Why don't American passenger airlines operate dedicated cargo flights any more?

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Why don't American passenger airlines operate dedicated cargo flights any more?


Why do some airlines operate fleets so diversified?Did Pacific Southwest Airlines ever operate flights under VFR?Are cargo and passenger flights flown differently?Why do airlines have intermediate stopovers with no passenger boarding?Why might American Airlines fly a 767 from JFK to EWR?Why do we see many more 5th and 8th freedom cargo flights than passenger flights?Why don't we have helicopter airlines?Do ETOPS requirements vary between passenger, cargo, and non-revenue flights?Which items are allowed on passenger flights but not on cargo ones?Why offload bags for missing passengers when flights are allowed to carry unaccompanied non-PAX air-cargo in holds?













7












$begingroup$


I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).



Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.










share|improve this question











$endgroup$












  • $begingroup$
    And Amazon now too.
    $endgroup$
    – CrossRoads
    2 hours ago










  • $begingroup$
    Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
    $endgroup$
    – zymhan
    1 hour ago
















7












$begingroup$


I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).



Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.










share|improve this question











$endgroup$












  • $begingroup$
    And Amazon now too.
    $endgroup$
    – CrossRoads
    2 hours ago










  • $begingroup$
    Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
    $endgroup$
    – zymhan
    1 hour ago














7












7








7





$begingroup$


I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).



Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.










share|improve this question











$endgroup$




I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).



Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.







airline-operations cargo






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited 55 mins ago









Community

1




1










asked 22 hours ago









zymhanzymhan

343110




343110












  • $begingroup$
    And Amazon now too.
    $endgroup$
    – CrossRoads
    2 hours ago










  • $begingroup$
    Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
    $endgroup$
    – zymhan
    1 hour ago


















  • $begingroup$
    And Amazon now too.
    $endgroup$
    – CrossRoads
    2 hours ago










  • $begingroup$
    Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
    $endgroup$
    – zymhan
    1 hour ago
















$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
2 hours ago




$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
2 hours ago












$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
1 hour ago




$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
1 hour ago










3 Answers
3






active

oldest

votes


















15












$begingroup$

Alaska Airlines Cargo Freighter



Alaska Airlines, Hawaiian Airlines still have dedicated freighters.



American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.




  • https://www.aacargo.com

  • https://www.alaskaair.com/content/cargo/general

  • https://www.deltacargo.com

  • https://www.hawaiianaircargo.com

  • https://www.swacargo.com


Alaska used to run 737 Combi to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.




  • https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/


Good luck shipping your parcel.



Hawaiian Air Cargo






share|improve this answer











$endgroup$









  • 2




    $begingroup$
    The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
    $endgroup$
    – user71659
    18 hours ago






  • 10




    $begingroup$
    @user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
    $endgroup$
    – David Richerby
    17 hours ago






  • 1




    $begingroup$
    @DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
    $endgroup$
    – user71659
    17 hours ago






  • 10




    $begingroup$
    @user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
    $endgroup$
    – David Richerby
    17 hours ago






  • 3




    $begingroup$
    @user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
    $endgroup$
    – user33375
    14 hours ago





















14












$begingroup$

A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.



There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
    $endgroup$
    – jamesqf
    21 hours ago






  • 3




    $begingroup$
    In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
    $endgroup$
    – Mazura
    16 hours ago








  • 1




    $begingroup$
    @Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
    $endgroup$
    – chrylis
    3 hours ago










  • $begingroup$
    @chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
    $endgroup$
    – jamesqf
    4 mins ago



















7












$begingroup$

The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.



According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.



And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    Razor...thin...margins.
    $endgroup$
    – J...
    19 hours ago











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3 Answers
3






active

oldest

votes








3 Answers
3






active

oldest

votes









active

oldest

votes






active

oldest

votes









15












$begingroup$

Alaska Airlines Cargo Freighter



Alaska Airlines, Hawaiian Airlines still have dedicated freighters.



American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.




  • https://www.aacargo.com

  • https://www.alaskaair.com/content/cargo/general

  • https://www.deltacargo.com

  • https://www.hawaiianaircargo.com

  • https://www.swacargo.com


Alaska used to run 737 Combi to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.




  • https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/


Good luck shipping your parcel.



Hawaiian Air Cargo






share|improve this answer











$endgroup$









  • 2




    $begingroup$
    The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
    $endgroup$
    – user71659
    18 hours ago






  • 10




    $begingroup$
    @user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
    $endgroup$
    – David Richerby
    17 hours ago






  • 1




    $begingroup$
    @DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
    $endgroup$
    – user71659
    17 hours ago






  • 10




    $begingroup$
    @user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
    $endgroup$
    – David Richerby
    17 hours ago






  • 3




    $begingroup$
    @user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
    $endgroup$
    – user33375
    14 hours ago


















15












$begingroup$

Alaska Airlines Cargo Freighter



Alaska Airlines, Hawaiian Airlines still have dedicated freighters.



American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.




  • https://www.aacargo.com

  • https://www.alaskaair.com/content/cargo/general

  • https://www.deltacargo.com

  • https://www.hawaiianaircargo.com

  • https://www.swacargo.com


Alaska used to run 737 Combi to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.




  • https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/


Good luck shipping your parcel.



Hawaiian Air Cargo






share|improve this answer











$endgroup$









  • 2




    $begingroup$
    The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
    $endgroup$
    – user71659
    18 hours ago






  • 10




    $begingroup$
    @user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
    $endgroup$
    – David Richerby
    17 hours ago






  • 1




    $begingroup$
    @DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
    $endgroup$
    – user71659
    17 hours ago






  • 10




    $begingroup$
    @user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
    $endgroup$
    – David Richerby
    17 hours ago






  • 3




    $begingroup$
    @user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
    $endgroup$
    – user33375
    14 hours ago
















15












15








15





$begingroup$

Alaska Airlines Cargo Freighter



Alaska Airlines, Hawaiian Airlines still have dedicated freighters.



American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.




  • https://www.aacargo.com

  • https://www.alaskaair.com/content/cargo/general

  • https://www.deltacargo.com

  • https://www.hawaiianaircargo.com

  • https://www.swacargo.com


Alaska used to run 737 Combi to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.




  • https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/


Good luck shipping your parcel.



Hawaiian Air Cargo






share|improve this answer











$endgroup$



Alaska Airlines Cargo Freighter



Alaska Airlines, Hawaiian Airlines still have dedicated freighters.



American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.




  • https://www.aacargo.com

  • https://www.alaskaair.com/content/cargo/general

  • https://www.deltacargo.com

  • https://www.hawaiianaircargo.com

  • https://www.swacargo.com


Alaska used to run 737 Combi to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.




  • https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/


Good luck shipping your parcel.



Hawaiian Air Cargo







share|improve this answer














share|improve this answer



share|improve this answer








edited 9 mins ago









Mad Physicist

1073




1073










answered 18 hours ago









gwallygwally

1,234512




1,234512








  • 2




    $begingroup$
    The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
    $endgroup$
    – user71659
    18 hours ago






  • 10




    $begingroup$
    @user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
    $endgroup$
    – David Richerby
    17 hours ago






  • 1




    $begingroup$
    @DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
    $endgroup$
    – user71659
    17 hours ago






  • 10




    $begingroup$
    @user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
    $endgroup$
    – David Richerby
    17 hours ago






  • 3




    $begingroup$
    @user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
    $endgroup$
    – user33375
    14 hours ago
















  • 2




    $begingroup$
    The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
    $endgroup$
    – user71659
    18 hours ago






  • 10




    $begingroup$
    @user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
    $endgroup$
    – David Richerby
    17 hours ago






  • 1




    $begingroup$
    @DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
    $endgroup$
    – user71659
    17 hours ago






  • 10




    $begingroup$
    @user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
    $endgroup$
    – David Richerby
    17 hours ago






  • 3




    $begingroup$
    @user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
    $endgroup$
    – user33375
    14 hours ago










2




2




$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
18 hours ago




$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
18 hours ago




10




10




$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
17 hours ago




$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
17 hours ago




1




1




$begingroup$
@DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
$endgroup$
– user71659
17 hours ago




$begingroup$
@DavidRicherby The real answer to the question is the economics of cargo compared to the geography of North America (you have to have a network). Alaska is a special case. The fact that combi/narrowbody cargo in Alaska is profitable is inapplicable to the lower 48.
$endgroup$
– user71659
17 hours ago




10




10




$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
17 hours ago




$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
17 hours ago




3




3




$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
14 hours ago






$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
14 hours ago













14












$begingroup$

A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.



There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
    $endgroup$
    – jamesqf
    21 hours ago






  • 3




    $begingroup$
    In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
    $endgroup$
    – Mazura
    16 hours ago








  • 1




    $begingroup$
    @Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
    $endgroup$
    – chrylis
    3 hours ago










  • $begingroup$
    @chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
    $endgroup$
    – jamesqf
    4 mins ago
















14












$begingroup$

A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.



There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
    $endgroup$
    – jamesqf
    21 hours ago






  • 3




    $begingroup$
    In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
    $endgroup$
    – Mazura
    16 hours ago








  • 1




    $begingroup$
    @Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
    $endgroup$
    – chrylis
    3 hours ago










  • $begingroup$
    @chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
    $endgroup$
    – jamesqf
    4 mins ago














14












14








14





$begingroup$

A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.



There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.






share|improve this answer









$endgroup$



A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.



There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.







share|improve this answer












share|improve this answer



share|improve this answer










answered 22 hours ago









DaveDave

65.9k4124238




65.9k4124238








  • 1




    $begingroup$
    That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
    $endgroup$
    – jamesqf
    21 hours ago






  • 3




    $begingroup$
    In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
    $endgroup$
    – Mazura
    16 hours ago








  • 1




    $begingroup$
    @Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
    $endgroup$
    – chrylis
    3 hours ago










  • $begingroup$
    @chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
    $endgroup$
    – jamesqf
    4 mins ago














  • 1




    $begingroup$
    That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
    $endgroup$
    – jamesqf
    21 hours ago






  • 3




    $begingroup$
    In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
    $endgroup$
    – Mazura
    16 hours ago








  • 1




    $begingroup$
    @Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
    $endgroup$
    – chrylis
    3 hours ago










  • $begingroup$
    @chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
    $endgroup$
    – jamesqf
    4 mins ago








1




1




$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
21 hours ago




$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
21 hours ago




1




1




$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
21 hours ago




$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
21 hours ago




3




3




$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
16 hours ago






$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
16 hours ago






1




1




$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
3 hours ago




$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
3 hours ago












$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
4 mins ago




$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
4 mins ago











7












$begingroup$

The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.



According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.



And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    Razor...thin...margins.
    $endgroup$
    – J...
    19 hours ago
















7












$begingroup$

The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.



According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.



And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.






share|improve this answer









$endgroup$









  • 1




    $begingroup$
    That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    Razor...thin...margins.
    $endgroup$
    – J...
    19 hours ago














7












7








7





$begingroup$

The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.



According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.



And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.






share|improve this answer









$endgroup$



The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.



According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.



And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.







share|improve this answer












share|improve this answer



share|improve this answer










answered 22 hours ago









John KJohn K

19.8k12457




19.8k12457








  • 1




    $begingroup$
    That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    Razor...thin...margins.
    $endgroup$
    – J...
    19 hours ago














  • 1




    $begingroup$
    That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
    $endgroup$
    – zymhan
    21 hours ago






  • 1




    $begingroup$
    Razor...thin...margins.
    $endgroup$
    – J...
    19 hours ago








1




1




$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
21 hours ago




$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
21 hours ago




1




1




$begingroup$
Razor...thin...margins.
$endgroup$
– J...
19 hours ago




$begingroup$
Razor...thin...margins.
$endgroup$
– J...
19 hours ago


















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