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United Airlines sacrifices cargo capacity to replace grounded 777s

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United Airlines could lose some altitude on its cargo sales as it shuffles around its fleet to cover the loss of 777s now parked for safety reasons. (www.freightwaves.com) More...

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jptq63
jptq63 1
While there might be another reason(s), this implies financially United is still earning more off passenger flights somehow. I also make note that article indicates cargo demand (air type) is greater now vs. year ago and there are also fewer providers (capacity) than a year ago, and if supply-demand hold, rates should be greater. Wonder how FexEx & UPS make money with their air freight? Anyone else got ideas on the business sense here?
ekulisch
Eric Kulisch 2
Airlines always place more value on passenger than cargo, but there could be some changes in mindset as cargo business improves. That said, these widebody planes can carry a lot of cargo still in passenger mode, so it's not so much a loss of capacity as in flexibility and how and where United can deploy them. Even if the passenger planes aren't filled that much, it's likely cargo will dictate what routes United runs for the time being. . . FedEx and UPS are completely different animals - they are mostly flying cargo for their own shipments, so they are supporting their high-yielding package business, not dependent on outside cargo shippers so much and they are focused on cargo, not divided with passenger considerations.

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