Cargo Airline Sends New Boeing 767 Freighters Directly to Storage

Soft airfreight market forces Northern Air Cargo affiliate to postpone use of aircraft.

Friday, April 12, 2024 at 04:37 PM ET

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Northern Air Cargo flies Boeing 767-300 freighters for Miami-based sister company StratAir. [Credit: Shutterstock/Kevin Porter]

Key Takeaways:

Northern Air Cargo's parent company, Saltchuk Resources, has stored two newly delivered widebody freighter aircraft immediately due to insufficient profitable business and depressed pricing in the global air cargo market.
This decision is a cost-cutting measure for Northern Air Cargo, which reported a $12 million loss, and defers the aircraft's operation until market conditions improve or they can replace existing leased planes.
Northern Air Cargo's situation reflects a broader industry trend where cargo airlines are scaling back fleet expansion plans, originally made during the COVID-19 boom, due to recent market softening.

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The company behind Northern Air Cargo has taken delivery of two widebody freighter aircraft this year and immediately placed them in storage because there isn’t enough business to operate them profitably despite the improved outlook for the global airfreight market, FreightWaves has learned.

The decision represents the latest case of an all-cargo airline throttling back on fleet expansion plans made during the COVID-19 crisis when a shortfall in shipping capacity sent rates through the roof and made freighters valuable assets.