Originally Posted by
11atsomto
People say Cargo drives everything you can't make money in any route unless it has Cargo, yet we (and like the entire industry which will soon become the norm rather than the exception) take narrowbody planes across the Atlantic.
I have been told in a classroom on company property that if Polarius or whatever the " nomenclature du jour" the entire cost of the flight is paid for...............
but like what if everyone used points to upgrade?
I have been told that Hawaii is pretty much a money losing market and is only kept so as to reward or entice Mileage plus explorers to cash in thier rewards as they continue to chase thier next status.
I don't really know........not really part of my job to know that. I just kind of focus on ending up where where it says on the peoples boarding passes......and if can do so safely then maybe do so within 14 minutes after the time that's listed.
Lots of US airlines have had dedicated cargo operations. Most were not successful or at best marginally profitable in the good years. The biggest problem is you are competing with yourself on a low yield product. Thats never a good idea. Current international air freight rates are mostly in the 1 to 2 dollars a pound range. A discussion on Lufthansa cargo is included below. On the subject of narrow bodies over the Atlantic for the most part they are not profitable. Look at how JetBlue is doing in the best international market to Europe in 30 years. They are useful as place holders in the winter and for network reach in some situations.
"Lufthansa management forecast a slight increase in demand for 2024, with profit levels staying about the same, despite robust airfreight volumes across the industry so far this year. Market researchers report air cargo volumes jumped about 14% in January and an additional 11% in February compared to the same periods in 2023.
A major headwind for cargo was the company’s injection of more passenger flights, which raised the amount of cargo capacity across the network by 7% and weighed on pricing. In fact, volume of 7.5 billion freight ton-kilometers was 3% higher than the previous year, while yields fell 39.3% — an indication the top line was most harmed by falling rates. Increased capacity was reflected in a 1.9-point drop in the cargo load factor, meaning less than 60% of available cargo space was filled."