Originally Posted by
777Brian
Let’s talk about cargo; I bring it up because everyone always talks about how important it is. There is no UA route in the network that exists solely for cargo. Cargo is the icing on the cake that may help the profitability of a route as passenger loads ebb and flow but won't make a flight make financial sense. Money making cargo is heavy and adds to the fuel expense of a flight so a balance between cargo and passengers is required. During the 1st quarter of 2010 UA generated $157 million in cargo revenue. I’m going to assume the 1st quarter has 91(13*7) days, this means each day UA cargo takes in only $1.7 million in revenue (chump change) . I think we can comfortably say that routes like SYD, HKG, NRT, HNL, OGG, PEK, PVG, LHR, KWI, FRA carry the bulk of Cargo, maybe 30 flights. So let’s say the 30 flights split the $1.7 million each day that means the IAD-PEK might be carrying as much as $57K although I bet the actual number is less than 25% of that.
Excellent summary that debunks the common Flyertalk myth that ultra-longhaul flights often carry enough cargo to cover the expenses and that passenger revenue is just gravy.
In the first quarter of 2010, UA carried 462,241,000 cargo ton miles at a revenue of $157 million, or an average of $0.34 per ton mile, and 48 million cargo ton miles of that total included mail, which is primarily domestic. Given that some 777 flights to/from China and Japan can only carry 10 to 15 tons of cargo, a one-way cargo total of $20k to $30k might be reasonable. Several F and/or J seats sold bring in as much revenue.