Air Canada has removed two new Boeing 767-300 freighters from its fleet, marking a significant step back in its ambitious cargo expansion plans. This decision comes despite a strong recovery in the air cargo market throughout 2024. According to the company’s second-quarter earnings report, the freighter fleet has been reduced from eight to six aircraft, with the sidelined planes being the new models delivered by Boeing earlier this year.
The reduction is part of a broader strategic reversal by Air Canada, which had aggressively expanded its cargo operations in response to heightened demand during the COVID-19 pandemic. Initially, the airline aimed to grow its freighter fleet to 12 aircraft by 2025, even considering adding larger Boeing 777 freighters. However, management has since recognized that the Canadian market, with its unique challenges, may not support such an extensive fleet. The 767 aircraft, while valuable, are costly to operate on long-haul routes, particularly in a market where maintaining high load factors is difficult.
The two grounded freighters were last flown to Kansas City International Airport, where they remain parked. While Air Canada has not confirmed whether the planes will be sold, aviation experts suggest that their high value may limit potential buyers, especially since new planes can be acquired from Boeing at lower prices.
This downsizing aligns with Air Canada’s earlier decision to cancel orders for additional freighter conversions and Boeing 777 cargo jets. The airline is now focusing on a more sustainable cargo strategy, acknowledging that while demand has rebounded, it may not justify the large-scale expansion initially planned. Air Canada’s profit halved in the second quarter, and the slight uptick in cargo revenue was not enough to offset rising costs and increased competition in passenger services.
Overall, Air Canada’s cargo business, which once seemed poised for significant growth, is now being recalibrated to align with the realities of the market, with the airline cautiously navigating the balance between opportunity and operational feasibility.
Source:
https://www.freightwaves.com/news/air-canada-drops-2-late-model-boeing-freighters-from-fleet
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