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, part of Saltchuk Resources, has placed two newly delivered widebody freighter aircraft into storage because there isn't enough profitable business to operate them, despite an improved global airfreight market outlook.
This action reflects a broader industry trend where cargo airlines are scaling back fleet expansion plans made during the COVID-19 boom due to current overcapacity, depressed pricing, and shifting market dynamics.
Northern Air Cargo incurred a $12 million loss in the last fiscal year and is implementing cost-reduction measures, with the new aircraft intended to replace leased planes when market conditions in their specific operating regions improve.
Other major airfreight companies, including FedEx Express, Amerijet, and Cargojet, have also reversed or curtailed their cargo fleet expansion plans, highlighting a challenging environment for many specialized air cargo operators.

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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.