What is the percentage of revenue that an airline earns from the Air Cargo segment?
The revenue from Air Cargo is generally a small percentage with the exception of airlines like Lufthansa, Air France, Singapore Airlines and similar carriers who have been in the freighter business for a longer period. Most of the carriers have not given due importance to cargo as cargo is always interdependent on the passengers’ capacity. Cargo is invariably a low priority for an airline as the highest priority are the passengers due to the higher yield and this followed by passenger baggage and thereafter whatever space is left is taken by cargo. As a result cargo has never been a dominant role player in the revenue of an airline except for airlines who operate dedicated freighters or all cargo flights whether they are companies into cargo traffic only or even commercial airlines who have an independent fleet of aircraft dedicated for cargo handling only. Such airlines definitely have a larger revenue share from cargo traffic. It is very difficult to tell you the exact percentage of