An American Airlines 777 is loaded with cargo at Philadelphia International Airport.
Leslie Josephs/CNBC
Airlines’ cargo revenue is experiencing a slump, which is actually a positive sign for the recovery of the travel industry.
Delta, United, and American have reported year-over-year declines of approximately 40% in their second-quarter cargo revenue.
In the first half of 2023, Delta’s cargo business generated $381 million, compared to $561 million in the first half of 2022. American’s cargo unit brought in $420 million, down from $692 million in the first six months of last year. United’s cargo revenue for this year reached $760 million, a decrease from $1.2 billion the previous year.
However, this decline in cargo revenue is accompanied by record revenue for airlines, highlighting the recovery in travel demand. The role of cargo in supporting airlines’ revenue during the pandemic has diminished.
Cargo revenue at United, which is the largest of the three major U.S. carriers, accounted for less than 3% of its $25.6 billion year-to-date revenue in the first half of 2023. This is significantly lower than the 10% contribution it made in 2020.
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