Airlines Are Replacing ‘Self-Loading Cargo’ (A.K.A. Passengers) With Actual Cargo As Coronavirus Causes Havoc For Industry

There is an old joke that airlines sometimes view passengers as little more than “self-loading cargo”. Now, in the age of the coronavirus pandemic, cabin space that was once filled by fare-paying humans is being taken up by boxes of masks and gloves and consignments of ventilators.

This is a serious business. With passenger planes largely grounded, a large chunk of the world’s air cargo capacity has also suddenly disappeared, making life difficult for anyone trying to send vital medical equipment and other supplies to where they are most needed.

A growing number of airlines are reacting to the problem by repurposing some of their passenger aircraft to carry cargo. In the U.S., the likes of Delta, American and United have all started cargo-only flights and in other parts of the world carriers including Aeromexico, British Airways, Emirates, Qantas and others have made unused passenger aircraft available for chartered cargo operations. Austrian recently used two of its Boeing 777 passenger planes to fly medical equipment in from China.

This makes business sense for all involved. While leasing costs for passenger aircraft have fallen 35-40% for wide-bodied aircraft over the course of this year, the sudden shortage of cargo capacity has pushed the cost of those aircraft up substantially.

“There is a desperate shortage of capacity in the market,” says John Grant, senior analyst at aviation consultancy OAG. “The lease rates and the market rates for cargo have in some cases increased by six times the level they were in January because of the urgent need for the movement of medical supplies and other equipment that will help us get through this event.”

Gulf carriers respond

Middle East airlines have been getting particularly enthusiastic in the past few days. On March 26, Abu Dhabi-based Etihad announced it was going to use some of its Boeing 787 aircraft as passenger freighters to operate 34 weekly flights to 10 destinations, including India, Thailand, Singapore, Philippines, Indonesia and South Korea.

“It is essential these trade lanes remain open,” said Abdulla Mohamed Shadid, the airline’s managing director for cargo and logistics. “We are able to serve those constrained markets that face decreased passenger freight operations, offering a strategic cargo lifeline.”

Others are starting to operate cargo-only flights for the first time. Low-cost carrier Fly Dubai, for example, operated its first all-cargo flight to Kuwait last week. It says it is planning to expand its cargo operations and is “studying the opportunity of cargo in its cabin as well as in the hold”. 

Bahrain’s Gulf Air has also been making its passenger aircraft available for cargo-only flights. Regional supermarket chain Lulu Hypermarket brought a consignment of food on a chartered Gulf Air Boeing 787 from India to Bahrain on March 25. The airline said “similar airlifts shall continue as long as required.”

However, not all of the new breed of cargo operations are going smoothly. The aviation industry’s trade body, the International Air Transport Association (IATA), has warned that some flights carrying essential equipment are facing unwelcome bureaucratic hurdles.

“We are still seeing examples of cargo flights filled with life-saving medical supplies and equipment grounded due to cumbersome and bureaucratic processes to secure slots and operating permits,” said Alexandre de Juniac, IATA director general, on March 25. “These delays are endangering lives. All governments need to step up to keep global supply chains open.”