Despite strong overall performance in the second quarter, US airlines Delta, United, and American have been unable to fully capitalize on the surging e-commerce market from China.

Key Points:

• Mixed Cargo Performance: While all three airlines saw increases in cargo ton-kilometers (CTK), only Delta and United experienced growth in freight revenue. American Airlines, on the other hand, reported a slight decline.
• Lagging Behind Competitors: North American carriers have consistently trailed behind their international counterparts in terms of traffic growth. Their capacity expansion has also been slower compared to other regions.
• Impact of E-commerce: The rapid growth of e-commerce has significantly boosted global airfreight volumes and yields, but US airlines have been unable to fully participate due to limited capacity on routes to China.
• Operational Challenges: Delta has faced significant disruptions due to IT outages, impacting both passenger and cargo operations.

Reasons for Underperformance:

• Limited Capacity: US airlines have been unable to restore pre-pandemic capacity on routes to China due to geopolitical tensions and restrictions.
• Focus on Passenger Traffic: The primary focus of US carriers has been on rebuilding passenger operations, leaving limited resources for cargo expansion.
• Inefficient Cargo Handling: American Airlines experienced a decline in cargo revenue despite increased volume due to a decrease in yield per ton-mile, suggesting potential inefficiencies in cargo handling.

The failure to capitalize on the e-commerce boom could result in lost revenue and market share for US airlines. As other carriers continue to expand their cargo operations, US airlines may face increased competition in the future. To remain competitive, US airlines will need to invest in cargo infrastructure, technology, and personnel to improve efficiency and customer service.

Overall, the results highlight the challenges faced by US airlines in adapting to the changing dynamics of the air cargo industry.

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