Boeing Co, which has almost doubled its capacity to turn passenger jets into freighters since the COVID-19 pandemic began, is considering adding even more as demand for air cargo extends into this year.
“There could be additional lines in the Asia region,” Ted Colbert, head of Boeing’s global services division, said during an interview with Bloomberg at the Singapore Airshow yesterday. “I see that as a strong place of demand, without a doubt.”
Boeing’s total lines worldwide that convert traditional aircraft into freighters have jumped to 22 from 12 since pandemic restrictions dramatically reduced passenger traffic, Colbert said.
Photo: Reuters
Seventeen lines are for Boeing 737s and five are for 767s, he said.
Airlines are relying more on their cargo businesses to replace lost income.
Demand for freighters has surged because so many passenger jets — which also carry cargo in their holds — are not in service because of the pandemic.
The International Air Transport Association (IATA) last month said that global cargo capacity was still constrained, driving up the price of air freight.
In December last year, rates were almost 150 percent above 2019 levels, the IATA said.
Cathay Pacific Airways Ltd (國泰航空), whose passenger business has been badly hurt due to COVID-19 restrictions considering it has no domestic market, last month said that it might report a second-half profit this year of HK$1.5 billion to HK$2 billion (US$192 million to 256 million), with cargo the key bright spot.
Seoul-based Korean Air Lines Co last year reported a third-quarter profit of US$370 million, buoyed by robust freight sales.
Colbert declined to say how many conversion lines Boeing is considering.
“I wouldn’t say it’s a large number right now,” he said. “We do not want to overcapacitize this market.”
Meanwhile, Cebu Air Inc, the biggest carrier in the Philippines, plans to configure its newest and upcoming A321 XLR aircraft with the highest seat density possible, doubling down on a strategy it deployed on wide-body jets used on short-haul routes.
“We always look to optimize the floor space that we have in combination with the number of lavatories, galleys etc,” Cebu Pacific chief executive adviser Michael Szucs said in an interview on the sidelines of the Singapore Airshow. “It will be another high-density configuration on the A321 XLR, but it’s still a very comfortable one.”
The A321 XLR, expected to enter service next year, can accommodate as many as 244 seats in a higher-density configuration.
Filling an aircraft to capacity with basic seats allows airlines to bring down fares by flying more people for the same expense, even at the cost of passenger comfort.
They compensate for that by offering an on-time and efficient flying experience.
It also helps carriers navigate through scant parking and landing slots at airports.
European low-cost carrier Ryanair Holdings PLC led the charge in 2014 when it ordered high-density jets from Boeing with eight more seats than normal, while Cathay Pacific in 2017 started cramming an extra seat into each economy row on its Boeing 777-300s, at the cost of about 2.5cm of personal space for each passenger.
“Airbus is very confident about not only the A330neo, but also about the configuration we got it in. We were the ones that innovated, along with Airbus, to get this number of seats on there,” Szucs said. “They think there will be other buyers as well.”
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