Market Trends of America Freighter Aircraft Industry
Derivative of Non-Cargo Aircraft Segment is Expected to Show Significant Growth During the Forecast Period
The derivative of the non-cargo aircraft segment will showcase significant growth in the American freighter aircraft market during the forecast period. The growth can be attributed to the increasing preference of airlines to modify their old and aging passenger aircraft with freighter aircraft. An increase in passenger-to-freighter conversions will act as a solution for the air cargo capacity constraints due to the major demand driven by the e-commerce business. These converted passenger planes will carry lighter, more voluminous cargo, such as e-commerce packages. During such conversions, aircraft are reinforced with floors that can handle the weight of the freight.
In addition, changes are made to the aircraft's fire detection, ventilation, and temperature control systems. This is because freighter aircraft have different requirements than passenger aircraft and must comply with different standards. Some of the available passenger-to-freighter (P2F) aircraft programs are B737, B757, A320, and A321. For instance, Cargojet, a cargo airline in Canada, invested in eight Boeing B777 passenger aircraft that will be converted to a pure cargo configuration. Mammoth Freighters, a US-based modification company, is working on its prototype Boeing B777-200LR conversion project for the cargo carrier Cargojet Airways (W8). The deliveries of these aircraft will be scheduled between 2023 and 2025. Thus, growing investment in converting passengers to freighter aircraft due to increased demand for air cargo drives the market growth.
United States Dominates the Market During the Forecast Period
The US held the highest shares in the market and continued its domination during the forecast period. The growth is due to the presence large number of aircraft freighter fleets and growing expenditure on the aviation sector. The presence of well flourished aviation sector, the growing number of airlines and airports, and increased demand for air cargo transportation drive the growth of the market across the country.
North American air carriers witnessed a 5.1% drop in demand in 2022 compared to 2021, with a capacity increase of 4.2%. Air cargo demand was up 13.7%, and capacity was 8.2% higher compared to 2019. US-China trade tensions hard-hit the North American carriers in 2019. In 2021, IATA announced that Federal Express (FedEx) was the largest cargo airline in the world, which recorded 20.7 billion Cargo Tonne Kilometers (CTK), 5.1% ahead of the 19.66 billion CTK in 2020. Currently, the company operates 697 aircraft, which consist of eight different aircraft variants.
Rising procurement of advanced freighter aircraft with high cargo-carrying capacity and growing contracts from American airlines for passenger-to-freighter conversions drive the growth of the market. For instance, in 2023, FedEx, the largest cargo airline in the US, took delivery of two Boeing B777 freighter aircraft and plans to deploy an additional six B777F aircraft during 2024 and 2025. The company also received 14 Boeing B767-300 freighter aircraft in 2023 and plans to deploy an additional 24 B767F aircraft during 2024 and 2025. Furthermore, FedEx plans to deploy new ATR 72- 600F aircraft for shorter routes and replace its aging ATR-42 aircraft with a Cessna SkyCourier 408 cargo aircraft, which will help to improve fuel efficiency. Such development will likely drive market growth across the country.
