Why is UA lagging in cargo & what impact will it have on 2014?
Dec 24, 2013, 1:49 am
#31
Join Date: Sep 2002
Location: Hoboken, NJ; Pembroke Pines, FL
Programs: CO Gold, SPG Gold
Posts: 2,939
Question for everyone saying that downgauging is the cause of UA's cargo decline:
Has UA actually seen a decline in flying on widebodies or did they just move them around in the system? I thought it was the latter. If so, then isn't it the case that the amount of cargo these widebodies would haul just has to go to different destinations rather than simply going away? In fact, since the widebodies generally moved from domestic to international, are cargo yields higher internationally so perhaps the decline is just a short term effect until UA gains enough market share in international cargo out of the gateways where they are putting the widebodies?
Has UA actually seen a decline in flying on widebodies or did they just move them around in the system? I thought it was the latter. If so, then isn't it the case that the amount of cargo these widebodies would haul just has to go to different destinations rather than simply going away? In fact, since the widebodies generally moved from domestic to international, are cargo yields higher internationally so perhaps the decline is just a short term effect until UA gains enough market share in international cargo out of the gateways where they are putting the widebodies?
Dec 24, 2013, 8:53 am
#32
Join Date: Feb 2008
Location: Chicago, IL
Programs: Marriott Ambassador, UA Mileage Plus 1K, AA Executive Plat, Marriott Ambassador Elite
Posts: 2,344
Question for everyone saying that downgauging is the cause of UA's cargo decline:
Has UA actually seen a decline in flying on widebodies or did they just move them around in the system? I thought it was the latter. If so, then isn't it the case that the amount of cargo these widebodies would haul just has to go to different destinations rather than simply going away? In fact, since the widebodies generally moved from domestic to international, are cargo yields higher internationally so perhaps the decline is just a short term effect until UA gains enough market share in international cargo out of the gateways where they are putting the widebodies?
Has UA actually seen a decline in flying on widebodies or did they just move them around in the system? I thought it was the latter. If so, then isn't it the case that the amount of cargo these widebodies would haul just has to go to different destinations rather than simply going away? In fact, since the widebodies generally moved from domestic to international, are cargo yields higher internationally so perhaps the decline is just a short term effect until UA gains enough market share in international cargo out of the gateways where they are putting the widebodies?
Jan 21, 2014, 6:38 pm
#33
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
FWIW, BA is dropping their dedicated cargo business almost entirely. They've announced that they will return a bunch of planes to the lessor and otherwise curtail operations, focusing only on carrying cargo on their passenger routes. They are contracting QR to operate 5x weekly LHR-HKG 77F flights but otherwise nothing dedicated for cargo.
Another sign of the softening cargo market, IMO.
Another sign of the softening cargo market, IMO.