Boeing has seen 22 rows of changing passenger jets into transportation
After a few years of facing rigid headwinds from the problematic jet max 737 and the decline sea transportation.
Since Pandemi began, this Seattle-based company has seen 22 of its total lines converting passenger aircraft into a transport aircraft, up from 12 in the years before the health crisis. According to the Head of the Boeing Ted Colbert Global Service Division, 17 lines have converted Boeing 737, while Lima has changed 767s.
In March, Alaska Air Group, Inc. (Al)-The fifth largest airline in the country-announced plans to change two middle-aged boeing 737-800s into cargo aircraft. The carrier already has three Boeing 737-700 which is dedicated solely for air delivery, betting that the pandemic air cargo explosion will continue even when passengers return to the sky.
Demand for Cargo Flying High
Airfreight volumes started to pick up early in the pandemic amid an e-commerce boom but have accelerated over the past six months. This is primarily due to increasing demand for industrial and consumer goods as restrictions ease and shipping supply chain bottlenecks arising from ongoing lockdowns in China—a country that accounts for nearly 30% of global manufacturing output.
Aircraft leasing company Avalon Holdings Ltd. sees air cargo revenue reaching $150 billion this year, with traffic doubling by 2040. Moreover, the Bureau of Transportation Statistics projects that the share of U.S. domestic and international air freight value will increase from 6% in 2018 to 10% by 2030.
“Air cargo volumes have been rising as the global economy recovers from the pandemic, as bottlenecks in the supply chain persist,” Tellimer equity analyst Nirgunan Tiruchelvam told Business Insider.
First Order for New 777-8 Freighter Planes
In January 2022, Boeing inked a deal worth more than $20 billion with Qatar’s state-owned flag carrier Qatar Airways Company Q.C.S.C. for up to 50 of its newest dual aisle jetliner, the 777-8, to mark the plane’s cargo-version launch. However, the Middle Eastern airline is not expected to take delivery of the jets until 2027 due to a string of delays. To secure the transaction, Boeing agreed to convert one-third of an existing Qatar order for 60 777-8 passenger planes to the freight version.
The aircraft is likely to be popular with carriers seeking to reduce their carbon footprint, given it can fly at comparable payloads to the aging 747-400 freighter but with 25% lower emissions.
The deal with Qatar Airlines shows growing demand for freighter jets and highlights Boeing’s commitment to remaining at the forefront of air cargo transportation.