The importance of air cargo to airline economics is not new, but its role has been amplified post-pandemic. Airlines that traditionally focused on passenger services are now leaning heavily into cargo to diversify revenue and fortify their financial resilience. For many carriers, cargo operations represent a lifeline, particularly as global economic uncertainty tempers leisure and business travel recovery in certain regions.
Air cargo is expected to generate over $150bn in revenue globally in 2024, according to IATA. This figure is bolstered by an enduring demand for the fast transportation of goods, including e-commerce, pharmaceuticals, perishables, and high-value goods like electronics. The rise of global supply chain complexities has further underscored the role of air freight as an indispensable pillar of international trade.
Air cargo often outpaces passenger flights in profitability due to its ability to generate higher yields per available tonne-kilometre and its operational flexibility. Unlike passenger services, which depend on fluctuating travel demand and face intense competition, air cargo can adapt swiftly to global supply chain needs, commanding premium rates for transporting high-value, time-sensitive goods.
Cargo operations also benefit from consistent demand across economic cycles, as businesses rely on air freight to maintain just-in-time inventory systems and meet consumer expectations for rapid delivery. Moreover, dedicated freighters and cargo belly-holds on passenger planes optimise load factors, ensuring that aircraft capacity is used efficiently. This financial resilience makes air cargo a reliable and lucrative revenue stream, often subsidising passenger services during periods of low travel demand or economic uncertainty.
What sets air cargo apart is its ability to quickly adapt to market needs. For example, during the pandemic, airlines swiftly converted passenger planes into freighters to meet the surging demand for personal protective equipment and vaccines. This agility has persisted, with airlines now deploying freighters to capitalise on lucrative routes and forming partnerships to expand their reach.
Collaboration between airline cargo divisions brings significant benefits by leveraging the strengths of each partner to create a more extensive and efficient global network. By sharing resources such as fleets, strategic hubs, and logistical expertise, airlines can optimise capacity utilisation, reduce operational costs, and expand their market reach. These alliances enhance connectivity, enabling faster and more reliable transport of goods across continents while offering customers access to a broader range of destinations and services.
This week, Qatar Airways Cargo announced a new strategic partnership with MASkargo, the cargo arm of Malaysia Aviation Group. The collaboration, inaugurated by Qatar Airways Cargo Chief Officer Cargo, Mark Drusch, and MASkargo Chief Executive Mark Jason Thomas, is a significant milestone in Qatar’s global cargo connectivity and operational efficiency
The partnership enables Qatar Airways Cargo to operate twice-weekly Boeing 777 freighter flights between Doha and Kuala Lumpur, adding over 200 tonnes of weekly capacity. From Kuala Lumpur, MASkargo’s Airbus A330 freighters will connect to Sydney and Melbourne, contributing an additional 75 tonnes of weekly capacity to Australia. With swift connection times and state-of-the-art facilities at both Hamad International Airport (DOH) and Kuala Lumpur International Airport (KUL), the partnership promises unmatched efficiency and reliability.
Beyond capacity expansion, the agreement benefits both carriers by leveraging their respective network strengths. Qatar Airways Cargo gains enhanced access to markets in Australia, New Zealand, and across Asia, while MASkargo taps into Qatar Airways’ expansive network covering Europe, the Middle East, and Africa. This symbiotic relationship enhances the export capabilities of Malaysian producers, enabling goods to reach a broader global audience.
Mark Drusch, Chief Officer Cargo at Qatar Airways Cargo, remarked:
“As the world’s leading global air cargo carrier, this partnership with MASkargo is a testament to our commitment to providing exceptional service and tailored solutions while expanding our global network through strategic alliances. By combining our strengths, we are able to offer our customers enhanced connectivity and efficiency, ensuring their products reach global markets in optimal condition.”
MASkargo CEO Mark Jason Thomas echoed this sentiment:
“Today marks an exciting step forward for MASkargo as we join forces with Qatar Airways Cargo to create a truly interconnected global cargo network. This alliance strengthens our infrastructure and capacity, empowering us to support the regional economy and facilitate the movement of high-demand goods to a larger global market.”
The partnership also reflects a broader strategic alignment between Qatar Airways and Malaysia Airlines, both of which are members of the oneworld alliance. Beyond cargo, the two airlines have cultivated a robust passenger codeshare agreement encompassing 62 destinations across Malaysia, South East Asia, Australia, the Middle East, Europe, and the Americas. This comprehensive approach demonstrates how alliances can deliver value across both passenger and cargo operations.
In July 2024, Qatar Airways Cargo and MASkargo signed a memorandum of understanding (MoU) to deepen collaboration and optimize operational synergies. This agreement has laid the foundation for innovative product offerings and streamlined logistics that are already benefiting global cargo customers.
The author is an aviation analyst. X handle @AlexInAir.
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