Air Canada on Monday announced the expansion of its freighter network for the upcoming winter season, adding new service from its Toronto global hub to Amsterdam, Monterrey, Mexico, and Panama City, Panama.
The additions provide customers with dedicated, large-pallet capacity on key transatlantic and Latin American trade lanes, and create additional routing options between Europe, Canada and Latin America.
The twice-weekly service to Amsterdam begins Oct. 29, Air Canada Cargo (TSX: AC) said in a news release.
Service to Amsterdam complements Air Canada’s passenger flights to the city, while Monterrey and Panama City deepen freighter connectivity to important manufacturing and distribution markets in Mexico and Central America.
Air Canada operates six Boeing 767-300 freighter aircraft and manages cargo shipped on passenger aircraft. In the second quarter, ended June 30, cargo revenue increased 28.4% to $229.8 million. Cargo revenue was up 16% for the first half to $413 million.
Management said the increases were primarily driven by higher cargo yields and favorable freight pricing conditions, particularly on international routes, in part, due to higher carrier surcharges. Airlines like Air Canada have significantly increased fuel surcharges on cargo shipments to cope with the skyrocketing price of jet fuel in the wake of hostilities between the U.S., Israel and Iran in late February.
By comparison, Delta Air Lines and United Airlines, which don’t have freighter aircraft, recorded second-quarter cargo revenue of $294 million and $571 million, respectively. But the two American majors also have much larger global widebody networks than Air Canada.
Why It Matters: Freighter aircraft allow Air Canada to cover gaps in its widebody passenger network to cities that cargo shippers frequent.
“The introduction of our freighters in Amsterdam is an important step in strengthening our European network. This gives us dedicated main-deck capacity at a time of year when transatlantic capacity is more constrained, helping us better serve customers in the Netherlands and across Europe while creating opportunities to connect their cargo through our global network,” said Matthieu Casey, managing director, commercial – cargo, at Air Canada. Together with new freighter service to Monterrey and Panama City, these additions enhance two-way connectivity between Europe and our growing Latin American network, creating more opportunities to reach key markets such as Quito, Lima, Bogotá and Mexico City.”
Air Canada’s new freighter service to Monterrey begins Oct. 26, operating three times per week. Panama City service begins Oct. 25, with up to two flights per week, the company said.
In Mexico, the airline’s cargo jets also fly to Mexico City and Guadalajara.
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Write to Eric Kulisch at ekulisch@freightwaves.com.
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