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Increased yields push up United's cargo revenue up in Q2

United's cargo revenue was up 22.6% year on year in the second quarter of 2026 due to increased yields. Cargo revenue at the US airline was $527m in the second quarter of 2026, compared to $430m in the second quarter of 2025. During the airline's second quarter 2026 earnings call, Scott Kirby, chief executive of United, said most of the improvement in cargo revenue came from higher yields rather than increased shipment volumes. Kirby commented: "Cargo had a really strong quarter. Most of the gains in cargo were yield related, not volume related, and I expect that to continue into Q3 as well." In the first quarter of the year, when carriers faced the start of the Middle East conflict and rising jet fuel prices, air cargo revenue had dropped 1.6% for United. Kirby did not elaborate on cargo shipment price increases in the call, but the airline indicated that although jet fuel prices have been a cost pressure, revenues, including cargo, were healthy in the quarter. On 18 April, United announced it would implement a "Market Disruption Fee" on freight shipments for airway bills (AWB) issued on or after 1 May. The fee is applicable based on the chargeable weight of the shipment. The airline said at the time: "The Market Disruption Fee reflects United Cargo's increased cost of doing business globally. United Cargo faces the challenge of rising costs imposed on us by our suppliers, partners, and by the market." Despite volumes not being United's main air cargo revenue driver, the airline transported nearly 347m pounds of cargo in the second quarter - the most for a second quarter since 2020, and 20m more pounds than in the same quarter last year. This included more than 9m pounds of medical shipments and 232,000 pounds of military shipments. Delta Airlines' cargo revenue increased 39% in its second quarter, which the airline attributed to volume growth as it seeks expansion in Asia and the Middle East.

FedEx-CMA CGM deal hints at new battle for air cargo capacity

When CMA CGM announced its $1.4bn acquisition of FedEx Supply Chain, most attention focused on the contract logistics business changing hands. But tucked into the announcement was another important detail: the two companies also expect to enter commercial agreements covering "select air cargo capacity solutions". However, neither company has so far explained what that means. Asked for more detail, FedEx told The Loadstar: "As the PR noted, the companies expect to enter into ocean and air commercial agreements to support our respective strategies. "At FedEx, we regularly enter into commercial agreements with third parties to support our global network. We have no further information to share at this time." CMA CGM did not respond. In FedEx's carefully worded answer, the reference to third-party commercial agreements may offer a clue to how the proposed cooperation could work. An industry source told The Loadstar that FedEx was already a significant buyer of capacity from scheduled airlines, particularly where direct passenger services offered a cheaper and lower-risk alternative to deploying its own aircraft. A shipment sold to a customer as a FedEx service might, for example, travel between London and New York in the belly of a British Airways or Delta passenger aircraft, with FedEx controlling collection, handling, and delivery at either end. The customer buys FedEx's network and service commitment, but does not necessarily know - or even need to know - who operated the flight. The source said scheduled airlines could offer capacity at extremely low rates, while FedEx could sell the resulting end-to-end movement at express prices. That model gives the integrator access to direct services without assuming the cost and utilisation risk of operating an additional aircraft. This is hardly a new practice. Integrators have long supplemented their own fleets with block-space agreements, charters, interline arrangements, and capacity purchased from passenger and cargo airlines. But FedEx appears to be giving third-party flying a more prominent role in its wider air freight strategy. The company last month signed an agreement with China Southern Air Logistics to explore cooperation covering cargo capacity, route networks, fleet resources, operations, and digitalisation. FedEx has also identified international air freight as an area for growth, while indicating that third-party providers could carry less urgent traffic as its own aircraft focus on higher-priority shipments. The strategy makes the CMA CGM agreement more interesting. The cooperation may prove to be a relatively conventional arrangement involving space on FedEx-operated flights. But FedEx's response leaves open the possibility that it could draw on the integrator's wider network of commercial airline relationships and the procurement of third-party capacity. Were Ceva Logistics to gain access to that broader pool of lift, the arrangement could be significantly more valuable than a simple agreement to buy space on FedEx freighters. It would also complement Ceva's existing forwarding business and CMA CGM Air Cargo's dedicated fleet (of five 777Fs and one A330F) without requiring CMA CGM to own or operate every aircraft needed to support customers - at a time when the future freighter market is in short supply. Atlas Air chief commercial officer Richard Broekman recently said the carrier would add no aircraft to its fleet this year because suitable capacity was simply unavailable. "This year is the first in many, many years that we are not adding aircraft to our fleet, and that's really just a function of no availability out there," he said. Atlas itself has agreed to acquire a 49% stake in Air Atlanta, giving it strategic access to the Icelandic operator's fleet of 14 widebody freighters, and described the deal as part of its growth strategy in a "structurally constrained widebody freighter aircraft market". However, rather than acquiring an entire airline or waiting years for new freighters, companies can seek to control capacity through commercial agreements, purchasing relationships, and network partnerships. That raises questions for scheduled airlines too. The source argued that airlines' growing reliance on digital booking platforms and bidding systems risked eroding yields, while leaving freight forwarders and integrators in control of the customer relationship and distribution channel. If an integrator can buy direct belly capacity cheaply, combine it with collection and delivery, and sell the resulting product at an express premium, it is capturing much of the commercial value from the aircraft's owner. In a market where owning more aircraft is increasingly challenging, the competitive advantage may lie in controlling access to the widest possible capacity pool - whether you charge express rates for it, or not.

New Hactl chief Frosti Lau: putting people before technology as he charts the next 50 years

When Frosti Lau left Cathay Cargo after 20 years to become chief executive of Hong Kong Air Cargo Terminals (Hactl), many in the industry were surprised. Long-serving staff at Cathay tend to stay - or switch to shareholder Swire Group - but not Mr Lau, whose most recent postings have been in Singapore and Australia. "I wanted to move back to Hong Kong for family reasons," he told The Loadstar. "I wanted to spend more time with my mum and my family. "Hong Kong is my home. I just want to continue to help it grow." Joining Hactl also offered something different. "The CEO role is a very good opportunity," he said. "Not just internationally, but because I feel I can make an impact on the Hong Kong community." That community focus runs throughout Mr Lau's vision for Hactl as it celebrates its 50th anniversary. While many logistics executives talk first about automation, infrastructure, or growth, he repeatedly returns to 'people'. His own journey into logistics began unusually early: "When I was 10, my father gave me a typewriter," he laughed. "He wanted me to type import and export forms, because it cost him money to have someone else do it." "I don't know why," he said, "but cargo just came naturally to me." That early introduction eventually led to a career that included six years with Dragonair and spanned Asia and South Africa, giving him experience across cargo (in which he has spent 16 years and counting), passengers, and digital transformation, before returning home to lead Hactl. But, under Mr Lau, will Hactl ever expand beyond Hong Kong? "There is a need to look at diversification, but of course, Hong Kong is our home," he said, noting the current HK$1bn investment in its facilities. "This is the biggest market, and we have the most sophisticated facilities, so we will definitely continue to invest in Hong Kong." But, he added: "We will keep looking at other options, but many of the bigger locations already have scale. One of the things I keep thinking about is where would be a good location for us. "Wherever we go, whatever we do, we have to ensure a good management team, and be able to support financial decisions between property, operations, and investment. We will look at what we can scale." But for now, he says, his priorities are clear. "There are three things I'm really interested in," he explained. "Partnerships, AI and digital, and talent development." Partnerships, he believes, should extend far beyond commercial relationships. He wants Hactl to work more closely with airlines, customers, and organisations such as the Hong Kong Trade Development Council, while also exploring staff exchanges with airline partners, so employees gain a better understanding of customers' operations and culture. Technology also has an important role to play, but not at the expense of people. "I'm doing a master's in AI," he said, "but technology should empower people, not replace them." Instead, he believes, artificial intelligence should remove repetitive work and help solve operational problems, leaving people responsible for oversight and decision-making. He explained that technology would help Hactl "to stay relevant", and also find new customers. "I think that's one big opportunity. Hactl has always been a very technology-driven company with very experienced people. How can we enhance [that], and how can we further deploy AI and digital? We need to continue to push for efficiency. Hong Kong is not a cheap place to operate, so we must continue to improve, and also stay relevant to the customers. More customers are now demanding digital partnerships." He added that his experience at Cathay could help. "Can we use AI to address any problems? We have a very, very sophisticated multi-story operation, but I also experienced digital transformation at Cathay Cargo, which might help us bring up different questions." The third priority, talent development, is perhaps the one he speaks about most passionately. "I want people to feel valued," he said. "You want people to be reasonably compensated, but more importantly you want them to grow together." That philosophy appears well suited to Hactl, where many employees have spent decades with the company. Asked why staff remain for so long in an industry often associated with high turnover, Mr Lau points to culture. "We take care of our people," he said. He cites everything from committees that allow staff to influence the quality of food in the company cafeteria, to practical measures that help employees cope with Hong Kong's intense summer heat while working on the terminal floor. "They feel they belong," he said. "Many people have grown together with Hong Kong Airport." As Hactl modernises its facilities over the next 15 years, Mr Lau believes that culture will become even more important. "My mission is for us to be the most trusted partner, the most innovative, and the most sustainable operator," he said. "All these need to be empowered by people." Hactl has earned a reputation for producing leaders who speak as readily about people and culture as they do technology and infrastructure. If his first weeks in the job are any indication, Mr Lau is very much cut from the same cloth.