An American Airlines 777 is loaded with cargo at Philadelphia International Airport.
Leslie Josephs/CNBC
Airlines’ cargo revenue is slumping. That’s a sign of good news for travel recovery.
Delta, United and American this month each reported year-over-year declines of about 40% in their second-quarter cargo revenue.
For the first half of 2023, Delta’s cargo business has generated $381 million, down from $561 million in the first half of 2022, while American’s cargo unit brought in $420 million compared with $692 million in the first six months of last year. United brought in $760 million from cargo so far this year, down from $1.2 billion a year earlier.
Meanwhile, airlines are reporting record revenue, if not earnings, thanks to the rebound in travel demand. That means the business impact of cargo, which once helped prop up airlines’ revenue during the pandemic travel plunge, has faded.
Cargo revenue at United, which generates the most of that business of the three largest U.S. carriers, for the first half of 2023 represented a less than 3% slice of the carrier’s $25.6