With freighter production delays, aging fleets requiring more maintenance, and air cargo demand continuing to exceed available capacity, airlines are increasingly being urged to optimise existing resources through partnerships and technology.
CargoTech, a digital solutions provider for the air cargo industry, is supporting carriers by offering tools to analyse and source available capacity, expand interline networks, and maximise space and load factor utilisation in real time.
Capacity under pressure
Over the past five years, air cargo capacity has struggled to keep up with demand, particularly due to surging e-commerce, ongoing MRO backlogs, and slower-than-expected freighter deliveries and conversions. The result: persistent space constraints, especially for airlines relying on aging fleets.
Michael Teoh, head of strategy at CargoTech, noted: “Last year was particularly tough for cargo divisions, given the huge return of the passenger market. While belly capacity returned, much of it was occupied by baggage, and airline network planners often prioritise passenger demand over cargo.
“Many holiday or second-tier destinations have limited cargo needs but still form part of the scheduled network, making it difficult for mixed-fleet cargo airlines to maintain high load factors.”
Collaboration as a solution
To address these challenges, CargoTech highlights partnerships and interline agreements as key strategies. These arrangements allow carriers to share space, particularly on underutilised legs, and mitigate capacity shortfalls.
Simple Block Space Agreements (BSAs) or more formal alliances—like those between Delta, Air France and Virgin Atlantic, or Singapore Airlines and Lufthansa—can be leveraged to optimise cargo operations, although most existing partnerships are passenger-focused.
Cédric Millet, president of CargoTech, added: “Any form of partnership or interline agreement looks good on paper but can pose operational challenges due to multiple ground handlers and incompatible digital systems.
“The cargo market needs long-term stability, but most airline capacity planning is still done seasonally, which makes consistency difficult.”
Digitalisation key to success
Millet emphasised the importance of three key factors for maximising available capacity: seamless digital interaction between partners, accessible partner space, and optimum space utilisation.
“Three of our CargoTech member companies offer exactly those solutions,” he said, pointing to the group’s focus on enabling smarter, more integrated cargo operations in a constrained market.