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☆ Airline cargo revenue is cratering. Here's why that's actually good news
▼ + stars: | 2023-07-20 | by ( Leslie Josephs | ) www.cnbc.com time to read: +3 min

Leslie Josephs/CNBCAirlines' cargo revenue is slumping. Delta , United and American this month each reported year-over-year declines of about 40% in their second-quarter cargo revenue. That's a significantly smaller portion than 2020, when cargo revenue made up more than 10% of United's sales. Zoom In Icon Arrows pointing outwardsThrough June, cargo revenue made up 1.3% and 1.6% of overall revenue at Delta and American, respectively, down from 3.5% and 12% in 2020. The Baltic Air Freight Index, which tracks worldwide air cargo rates, is down 47% from a year earlier.

Persons: DAL, Leslie Josephs, United, it's Organizations: American Airlines, Philadelphia International Airport, CNBC Airlines, United, Delta, Baltic Air Freight, International Air Travel Association Locations: United, American, U.S, Europe

Air freight flies in the bellies of passenger planes and dedicated freighters, most of which are converted planes. A Boeing 777 that is being converted into a cargo plane in Fort Worth, Texas, March 7, 2023. An old first-class suite on a former Nordwind Boeing 777 slated to be converted to a freighter, March 7, 2023. Aircraft technicians work on a Boeing 777 that is being converted into a cargo plane in Fort Worth, Texas, March 7, 2023. An aircraft technician works on a Boeing 777 that is being converted into a cargo plane in Fort Worth, Texas, March 7, 2023.

Persons: Leslie Josephs Organizations: Air, Baltic Air, Boeing, CNBC, CNBC Technicians, Aircraft, Companies, CNBC CNBC, Aspire, Mammoth, Fort Worth , Texas — Locations: Fort Worth , Texas, Texas, Singapore

One of Amazon 's key air cargo operators said Monday that the e-commerce giant is scaling back on flights this year, citing lower demand and slower economic growth. Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%. Through Amazon Air, the company has built up a burgeoning air network to control more aspects of the delivery process and ensure faster delivery. WATCH: How the pandemic shifted how Boeing and airlines think about air cargo

☆ Freight Forwarder Flexport Is Laying Off 20% of Its Workforce
▼ + stars: | 2023-01-12 | by ( Liz Young | ) www.wsj.com time to read: +4 min

Freight forwarder Flexport Inc. is cutting about 20% of its global workforce, or more than 600 workers, as the digital-focused business copes with falling shipping demand and repositions its operations to offer more supply-chain services. Mr. Petersen in June had estimated gross revenue of nearly $5 billion in 2022. The layoffs come amid a broader pullback in freight demand since the middle of last year as inflation has taken a toll on consumer demand and retailers have pulled back from earlier inventory restocking efforts. Mr. Clark, who led Amazon.com Inc.’s logistics expansion over his 20-plus years with the company, started as co-CEO at Flexport in September alongside the freight forwarder’s founder, Mr. Petersen. Mr. Clark is scheduled to fully take over the day-to-day leadership role on March 1, the company has said, and Mr. Petersen will then become executive chairman.

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