More and more passenger airlines are venturing into cargo operations, trying to get a share of the growing air freight market. How much have airlines earned from cargo? Will traditional air freight giants see their market demand affected?

1. The World's Largest Air Cargo Markets

After the boom during the pandemic, global air cargo volume continues to grow without showing signs of slowing down. According to the International Air Transport Association (IATA), cargo demand in January 2025 increased by 3.2% compared to January 2024, and overall demand is about 30% higher than pre-pandemic levels. The strongest growth was seen in Latin America, with an 11.2% increase compared to the same period last year. The global air cargo market share for January 2025 is shown in the table below:

Image Source: IATA

The decline in global maritime capacity has inevitably contributed to the growth of global air cargo, but the thriving international trade and global e-commerce market remain the main drivers of air cargo demand growth.

The largest international air cargo market globally is the East Asia to North America route. However, this market exhibits a significant imbalance, with westbound trade volume to North America being more than double the eastbound trade volume. This trade flow benefits from East Asia's advanced manufacturing capabilities in high-tech products and North America's vast consumer market.

In recent years, geopolitical tensions have led to some cargo flows shifting from China to neighboring countries like Thailand, Vietnam, and Malaysia, all of which have seen significant trade growth with North America.

The second-largest international air cargo market is the East Asia to Europe route. Many air freight companies in the Asia-Pacific region have unrestricted access to Russian airspace, while airlines from other regions are unable to fly over or to Russia due to ongoing sanctions, giving Asia-Pacific air cargo carriers a competitive edge.

IATA Director General Willie Walsh stated that January 2025 marks the 18th consecutive month of cargo volume growth, though the 3.2% year-over-year increase is slower compared to the double-digit growth in 2024. Similarly, while yields are still higher than in January 2024, yields have dropped 9.9% compared to December 2024, as cargo load factors decreased by 1.5 percentage points on average.

Trade growth, lower fuel costs, and e-commerce expansion remain positive factors for air cargo, but we need to closely monitor changes in the market environment, especially the potential impact of U.S. tariff policies, which could become a market uncertainty. Fortunately, the air cargo industry has extensive experience in adapting to changing operating environments.

2. The World's Largest Air Freight Companies

Measured in cargo tonne-kilometers (CTK), the world’s largest air cargo company is FedEx Express, followed by Qatar Airways Cargo. The global top ten air cargo companies are ranked as follows:

Chart: Cross-border E-commerce Logistics OmniSage

FedEx, with its extensive global network and advanced logistics solutions, remains the world’s top air cargo carrier. It operates over 700 freighters, delivering millions of packages daily to over 220 countries and territories.

Qatar Airways Cargo, benefiting from Doha’s geographic advantage, is the largest air cargo carrier in the Middle East. Its fleet includes Boeing 777Fs and Airbus A330Fs, specializing in fresh, pharmaceutical, and high-value goods transportation.

UPS holds a significant position in the air freight industry with its large fleet of Boeing 747s, 767s, and MD-11 freighters. Its highly efficient logistics system enables it to maintain a leading position in North America and Europe’s express markets.

Emirates SkyCargo, with a network spanning six continents, plays an important role in the global market. In 2025, it deepened cooperation with major e-commerce platforms, expanding its e-commerce logistics services to enhance its market competitiveness.

Atlas Air is the world’s largest operator of 747 freighters, serving clients including Amazon Air and DHL. In 2025, it continued expanding its fleet of Boeing 747-8Fs and 777Fs to meet the growing demand for e-commerce logistics and on-demand charter cargo.

Korean Air Cargo is a major player in the Asia-Pacific region, operating Boeing 777Fs and 747Fs, renowned for its expertise in transporting electronics, pharmaceuticals, and high-value goods.

Turkish Airlines, leveraging Istanbul's strategic location, connects Europe, Asia, and Africa. Its fleet includes Boeing 777Fs and A330Fs. In 2025, it continued expanding long-haul cargo routes to meet the growing demand for e-commerce shipments.

Cathay Pacific Cargo, as a key Asian air cargo carrier, operates a fleet of Boeing 747-8Fs and 747-400Fs, specializing in high-value goods and temperature-controlled transportation. In 2025, it further optimized its air cargo network, expanding trans-Pacific and Eurasian routes.

China Southern Airlines Cargo, supported by China’s strong export industry, ranks among the top air cargo companies in Asia. Its cargo hubs include Guangzhou, Shanghai, and Beijing, with a fleet of Boeing 777Fs and 747Fs. In 2025, it continued expanding cross-border e-commerce logistics services, strengthening trade routes between China and North America and Europe.

Luxembourg’s Cargolux is a leading European air cargo carrier, operating a fleet of Boeing 747-8Fs and 777Fs, specializing in the transportation of oversized and heavy goods, live animals, and high-value cargo.

3. How Do Airlines Make Money from Cargo?

Amid the exponential growth of the air cargo market, many passenger airlines have increased or even launched cargo services. The thriving market suggests there’s a lot of money to be made in cargo, so it's no surprise that more airlines are eager to get a share. Currently, cargo revenue accounts for about 5%-10% of commercial airlines' total revenue. How do they achieve this?

Many passenger aircraft are equipped with large cargo holds, typically used for passengers’ luggage, but this space can also be used for cargo. For instance, the Boeing 747-800 can carry over 5330 cubic feet of cargo in addition to more than 400 passengers, equivalent to the cargo capacity of two full-size trucks. The 747 Combi model, designed for both passengers and cargo, can carry around 250 passengers and over 10,000 cubic feet of cargo.

Cargo companies sometimes lease cargo space on passenger airlines. For example, the United States Postal Service (USPS) leases cargo space on about 15,000 of the 25,000 scheduled flights across the U.S. daily. Airlines usually charge based on weight, with rates ranging from $2.50 to $5.00 per kilogram, making it highly profitable. For large-volume shipments, airlines often offer discounts, and corporate customers can enjoy specific contract discounts as part of their agreements with cargo carriers.

In the past, global air cargo primarily relied on dedicated freighters, but in recent years, airlines have increasingly used commercial flights to carry more cargo. Some airlines even partner with freight operators to diversify their revenue streams. For example, Sun Country Airlines has established a close partnership with Amazon Air.

Additionally, according to consulting firm Accenture, overall air cargo demand has increased by about 10% since 2019, indicating that the demand growth is significant after the pandemic’s cyclical fluctuations. One might assume that professional air freight companies like FedEx and UPS are best positioned to take advantage of this market restructuring and emerge as the biggest winners, but this is not necessarily the case.

Passenger airlines’ cargo subsidiaries have seen the largest growth. According to IATA, cargo volumes carried by freighters operated by passenger airlines increased by 25%, and bellyhold capacity on commercial flights also saw moderate growth, in line with overall trends. It can be said that, post-pandemic, traditional passenger airlines’ cargo divisions have gained significant attention and growth.

4. Can Air Freight Giants Maintain Their Dominance?

The International Air Transport Association (IATA) predicts that by 2043, 3,900 freighters will be in operation globally, with about half of these converted from passenger aircraft. The continued growth of the global e-commerce industry and the increasing demand for timely deliveries could further drive the expansion of the cargo market.

More than 2,800 freighters will be delivered by 2043, but around 45% will replace aging models, meaning new capacity does not entirely equate to market growth. Nearly half of the new freighter models (including conversions) will be narrow-body aircraft, such as the Boeing 737 and Airbus A320, from the passenger market.

While more and more passenger airlines are offering cargo services, dedicated air freight carriers will still maintain high demand for several reasons:

Passenger flight schedules often do not meet the needs of cargo businesses;

Many major air cargo hubs offer minimal passenger services, such as Liège Airport (LGC) in Belgium, making it difficult to meet both passenger and cargo demands;

Hazardous materials cannot be transported in the bellyhold of passenger aircraft;

Weight restrictions and passenger priority may limit the cargo capacity of many commercial flights.

From a market structure perspective, the competitive landscape of the global air cargo industry is changing. Although traditional air freight giants like FedEx and UPS continue to dominate the global market, the increasing number of passenger airlines entering the cargo business has not only intensified competition but also provided customers with more options.

Differentiated demand in regional markets is also driving further segmentation in the global air cargo industry. For example, the strong growth in Latin America indicates that the potential of emerging markets is gradually being realized, which could provide new growth opportunities for air freight companies.

Overall, the global air cargo industry is expected to continue growing steadily in the future.

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