L'imad weighs up bid for cargo carrier Atlas Air

Abu Dhabi's L'imad Holding has emerged as one of the companies considering a bid for airfreight giant Atlas Air Worldwide Holdings. Quoting people familiar with the matter, Bloomberg last week reported that the sovereign investment platform is considering a bid in order to expand its presence in the logistics market. The bid is also driven by Abu Dhabi's efforts to provide alternatives to the Strait of Hormuz, which has been closed since the outbreak of the US-Iran war. The company is currently owned by private equity firm Apollo and Bloomberg's sources expect the company to be valued at around $10bn. The news that the freighter giant could be sold doesn't come as too much of a surprise. In December last year, reports emerged that Apollo was considering the potential sale of the company. At the time, the company was valued at around $12bn, including debts. An investor group led by US investor Apollo Global completed the purchase of Atlas Air Worldwide Holdings in March 2023 in a deal with an enterprise value of $5.2bn or an equity value of $2.9bn. Atlas Air Worldwide provides outsourced aircraft and aviation operating services and is the parent company of freighter operators Atlas Air and Polar Air Cargo and lessor Titan Aviation. Atlas claims its subsidiary companies operate the world's largest fleet of 747 freighter aircraft as well as 777 and 767 aircraft for domestic, regional and international cargo and passenger operations. It recently placed an order for 20 next-generation Airbus A350 freighters as it moves beyond a dedicated Boeing fleet. Services include ACMI, CMI, scheduled operations, charter operations and dry leasing. The sale comes as Atlas management has been suggesting a shortage of widebody freighters will hinder the air cargo industry over the coming 10 years and potentially beyond. If the prediction proves correct, Atlas would be in a good position to capitalise on the development given its large widebody fleet.

FedEx ramps up SAF procurement for use at five US airports

FedEx has struck agreements to secure more than 20m gallons of neat sustainable aviation fuel (SAF) across five US airports until the end of 2027. The agreements span FedEx operations at Newark Liberty International Airport, Oakland International Airport, Miami International Airport, John F. Kennedy International Airport, and Dallas Fort Worth International Airport. These agreements are expected to deliver SAF at blend ratios ranging from 30% to 50%, depending on location. According to FedEx, since last year, it has secured approximately 5m gallons of neat SAF through agreements that resulted in the deployment of 16.5m gallons of blended SAF across five US airports. In May last year, Neste announced it would supply 8,800 metric tons (more than 3m gallons) of SAF to FedEx at Los Angeles International Airport. This was the first major US SAF deployment by FedEx. Then in October, FedEx began to take delivery of SAF at Chicago-O'Hare Airport and Miami International Airport for the first time. FedEx is working toward its goal to source 30% of jet fuel blended from alternative sources by 2030, while expanding the use of SAF across its US air network. "The latest agreements represent an expansion of SAF within the FedEx air network enabled, in part, by state and federal level incentives," said Greg Paulus, vice president of enterprise sourcing at FedEx. "SAF is one of the most impactful decarbonization solutions available to aviation today and an important part of our approach to reducing emissions," added Karen Blanks Ellis, chief sustainability officer and vice president of environmental affairs at FedEx. "For the market to grow, supply needs to be reliable, affordable, and sustainable. Expanding our procurement allows us to employ more SAF in our network while bolstering the demand for greater production and scale."

FAA gives 777F three-year lifeline as freighter capacity crunch bites

The shortage of large freighters - and continued uncertainty over the arrival of Boeing's 777-8F - has prompted US regulators to allow the manufacturer to continue building the current 777F for three years after it falls foul of new fuel-efficiency rules. The FAA this week granted Boeing an exemption allowing up to 35 new 777Fs to receive their first certificates of airworthiness between 1 January 2028 and 1 January 2031. Without it, the freighter could not be certificated after 2027 because it does not meet incoming US greenhouse gas and fuel-efficiency standards. Boeing told the FAA it needed to continue production to meet "anticipated customer demand" and maintain widebody freighter supply until the more fuel-efficient 777-8F enters service. Aviation consultant David Kerr of JTD Advisory told The Loadstar there were still more than 30 unfulfilled 777F orders, even excluding aircraft associated with the Russian market. "The well-publicised shortfall in widebody freighters is improved," he said, adding that continued production would also give some relief to conversion programmes and their constrained feedstock. Stan Wraight, president of consultancy SASI World, was more emphatic. Asked whether he would take a new 777F despite its requiring an exemption from the incoming efficiency standard, he said: "Would I take one? Yes. The 747-400s are just not going to last much longer." He believes accelerated MD-11F retirements are adding to the requirement for replacement capacity. Demand for existing freighters is also exceptionally strong. Mr Wraight recalled one leasing company telling him that, for anyone owning a freighter, finding a customer was "like shooting fish in a barrel". Nor is the obvious alternative - converting passenger 777s - necessarily cheap or readily available. "The planned converted freighters are way, way too expensive right now at about $90m due to the shortage of aircraft to convert," said Mr Wraight. Delays to new-generation passenger aircraft are exacerbating the feedstock shortage, he added, as airlines retain 777-300ERs that might otherwise be converted. Aviation consultancy IBA has similarly highlighted constrained 777-300ER feedstock and estimated a converted aircraft at around $75m-$80m, potentially approaching $100m where engine shop visits are required. Mr Wraight estimated a new-build 777F at around $160m, but argued the higher initial expenditure could still make economic sense over a decade. "That $90m converted 777F versus a new 777F at, say, $160m - over 10 years you're better off with a new build," he said. Boeing made a similar argument to the FAA, warning that without continued 777F production operators could be forced to retain older, less-efficient aircraft while new-generation freighters remain under development. It said a 747-400F could consume up to 37% more fuel per trip than a 777F and its shorter range could require additional stops. The exemption also offers another insight into the timetable for the 777-8F. Boeing first requested the regulatory relief in December 2025 and supplemented its application in February. "This isn't a kneejerk," said Mr Kerr. Indeed, the FAA cited "uncertainty in the certification timeline" of the 777-8F when explaining its decision to allow another three years of 777F production. Mr Kerr said this would also keep Boeing's Everett facility and associated supply chain flowing, rather than risk a hard stop between production of the 777F and its successor. But there is an environmental price. Although Boeing describes the 777F as its most fuel-efficient dedicated freighter to date, the FAA calculated that adding all 35 aircraft, assuming no other freighters were retired, could increase fuel burn from US domestic freighter operations and international freighter departures from the US by about 8%, compared with 2024. However, against total commercial aviation fuel consumption, the FAA said the increase would be a "negligible fraction of a percent". Mr Kerr suggested the decision was consistent with environmental considerations taking a reduced priority in the US when weighed against economic interests. Mr Wraight was more forthright. "As per the environment, that seems to have gone out of the window in decision-making lately, with all the wars, tariffs and other issues in the world," he said. But one potentially important commercial question remains: whether other regulators will accept the exempted aircraft. European safety agency EASA participated in the FAA consultation, highlighting ICAO environmental standards and calling for an environmental assessment and for exempt aircraft to be publicly identified by serial number. The FAA made the latter a condition of approval. More significantly, it warned that its exemption did not automatically confer acceptance overseas. "Ultimately, the FAA notes that international acceptance of the exemption will be up to the decision of each affected airworthiness authority," it said. Mr Kerr said the possibility of aircraft built under the exemption facing restrictions in Europe could represent a significant constraint and have implications for financing and residual values. He suggested early financing agreements might therefore contain caveats around regulatory acceptance, potentially including a Boeing backstop should the issue remain unresolved. For now, however, Boeing has secured the regulatory breathing space it needs in the US. EASA had not responded to The Loadstar's questions at the time of publication.