Latest news with #AtlasAir
Yahoo
3 days ago
- Business
- Yahoo
Pittsburgh airport's new cargo facility welcomes first flights with Boeing 747 freighters
Pittsburgh International Airport's newest cargo facility got its first official use with four Boeing 747-400F freighters filling up before heading off to Europe. The 77,000-square-foot facility known as Cargo 4, which can unload and load two wide-body Boeing 747s or three Boeing 767s at the same time, was completed early this year. There aren't any cargo operators or freight forwarders who have set up shop there permanently, but two well-known international companies, Atlas Air and Challenge Group, used Cargo 4 for what was freight from the Northeast going to Europe. That included an Atlas Air flight from Anchorage, Alaska, to Pittsburgh, according to FlightRadar 24, a flight tracking site. Click here to read more from our partners at the Pittsburgh Business Times. Download the FREE WPXI News app for breaking news alerts. Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW
Associated Press
22-05-2025
- Business
- Associated Press
Atlas Air Worldwide Releases 2024 Sustainability Report
WHITE PLAINS, N.Y., May 22, 2025 (GLOBE NEWSWIRE) -- Atlas Air Worldwide Holdings, Inc. ('Atlas' or the 'Company'), the leading global provider of outsourced aviation logistics, today announced the release of its 2024 Sustainability Report. Atlas' sixth Sustainability Report provides details on the initiatives and programs that are helping move the Company forward on its sustainability journey. The progress described in the report is aligned with four key pillars in Atlas' sustainability strategy: Preserve Our Planet, Care for Our People, Maximize Social Impact and Grow Responsibly. 'As the global leader in outsourced aviation logistics, we recognize our responsibility to Care for the World We Carry,' said Michael Steen, Chief Executive Officer, Atlas Air Worldwide. 'Our One Atlas strategy, which positions sustainability as both a business imperative and a competitive advantage, is central to how we deliver on our commitment. In 2024, we continued to embed sustainability across every part of our Company, from improving fleet efficiencies and reducing emissions, to elevating employee training and safety initiatives, to making a positive impact in the communities in which we operate and reinforcing our dedication to responsible business practices. This integrated approach is how we provide long-term value for our customers, build resilience for the future, and drive measurable impact across the global supply chain.' 'We have set meaningful goals to reduce our emissions, which contributes directly to our customers' own sustainability targets,' said Richard Broekman, Chief Commercial Officer and Head of Sustainability. 'Last year, we modernized our fleet with eight new fuel-efficient widebody freighters, increased our use of sustainable aviation fuel (SAF), and created efficiencies in our operations – all are contributing to decarbonization in the aviation industry. This report provides an overview of a year marked by steady progress as we continued to lay the groundwork to advance our sustainability strategy in the years to come.' Key highlights from the 2024 report include: Preserve Our Planet Care for Our People Maximize Social Impact Grow Responsibly To learn more about Atlas Air Worldwide's sustainability efforts, view the 2024 Atlas Sustainability Report: Sustainability – Atlas Air Worldwide. About Atlas Air Worldwide Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world's largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767 and 737 aircraft for domestic, regional and international cargo and passenger operations. Contacts: Media: [email protected]
Yahoo
05-05-2025
- Business
- Yahoo
Sun Country faces slight delays integrating additional Amazon cargo jets
Sun Country Airlines in the first quarter took possession of three Amazon cargo jets, but only one is in service so far for the retail and logistics giant because integrating them into the existing fleet requires additional work, the company said Friday. Amazon is transferring eight leased Boeing 737-800 converted freighters to Sun Country (NASDAQ: SCNY) from previous contractor Atlas Air. Sun Country plans to have all the narrowbody freighters in service by the end of summer, bringing the dedicated Amazon (NASDAQ: AMZN) fleet to 20 aircraft and doubling the airline's cargo revenue. The initial Amazon-supplied aircraft began flying packages in late March. The other two cargo jets will be inducted into the fleet this quarter, the Minneapolis-based carrier said in its latest financial results. Sun Country CEO Jude Bricker told analysts on the quarterly earnings call that the amount of preparation necessary to absorb each used 737-800 freighter into the fleet varies because they may need parts to be replaced or inconsistent maintenance records to be resolved during the transition from the prior operator. The integration delays increase costs because Sun Country has staffed up on pilots to operate the aircraft and can't temporarily switch them to passenger operations because scheduled flights are planned months in advance and demand for ad hoc charters is difficult to project, he explained. It should be noted that delays so far are minor, and the entry-into-service timeline for all eight freighters is unchanged. Sun Country has a unique hybrid business model based on seasonal scheduled passenger service to sun-and-fun travel destinations, a charter business for sports teams and other groups – which uses the same aircraft – and cargo flying. Bringing an aircraft into a certificated airline's fleet involves many steps to meet safety, regulatory and operational requirements, as well as company standards. The process includes reviewing the maintenance history; conducting thorough inspections of the engines, systems and airframe; updating operational manuals; training pilots, technicians and ground personnel; customization; and obtaining approval from civil aviation authorities. 'Those airplanes are coming just as rapidly as we can put them in there, but there's a process of putting it on the certificate, getting the transition mods completed and then getting them scheduled. And we're running behind for reasons beyond our control,' Bricker said. 'So it's going to be a little lumpy as we move through the transition, but I expect in September to be operating 20 airplanes.' During the first quarter, Sun Country's cargo revenue increased 17.6% year over year to $28.2 million, despite a 1% decline in cargo block hours due to normalization of flight schedules and some weather events. The improvement was primarily due to an annual rate escalation in the Amazon contract that went into effect in December and the new contract for the extra freighters. Cargo revenue per block hour, a measure of productivity, increased 18.9% The cargo division's operating income was $1.5 million versus a $1.3 million loss in the prior year. Bricker reiterated that Sun Country will begin to double its cargo revenue in the fourth quarter, when the full fleet is in service. In 2024, the company achieved record cargo revenue of $107 million. The airline is drawing down some of its scheduled passenger service over the next year to ensure it has a sufficient number of pilots to reliably manage the Amazon growth. Overall revenue across Sun Country increased by $15 million to $326.6 million, and net income inched up to $36.5 million. Sun Country began supporting Amazon's air network in 2020. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Amazon airline prioritizes bigger aircraft to handle third-party cargo Sun Country expects to double cargo revenue with Amazon fleet additions Amazon transferring Boeing 737-800 cargo jets to Sun Country Airlines Sun Country retires jet, delays 737-900 service The post Sun Country faces slight delays integrating additional Amazon cargo jets appeared first on FreightWaves.
Yahoo
21-04-2025
- Business
- Yahoo
Air cargo faces $22B revenue hit when China tariff exemption ends
U.S. plans next month to cancel tariff-free access for low-value parcel shipments from China and Hong Kong, coupled with a new 145% tariff rate on Chinese imports, could bleed more than $22 billion in revenue from the air cargo sector over three years and put thousands of online sellers with direct-to-consumer fulfillment models out of business, according to an e-commerce and logistics consulting firm. Derek Lossing, the founder of Cirrus Global Advisors, has previously said the Trump administration's recent trade actions against China would 'decimate' air cargo out of China because demand for products on the Temu and Shein platforms would plummet. His Seattle-based consultancy has now quantified the downstream effects of the changes on the air cargo sector. The Cirrus Global Advisors model shows the airfreight industry revenue could contract $22 billion if the White House maintains tariffs at 125% for a substantial period of time, based on assumptions about lower consumer demand, excess airline capacity and downward pressure on yields. Large cargo airlines and freighter forwarders, like Atlas Air and Kuehne+Nagel subsidiary Apex Logistics, with heavy exposure to large Chinese marketplaces, as well as Amazon and smaller online brands, are expected to experience downward pressure on revenues, Losing said in a phone interview. The estimate was made before the U.S. clarified that China tariff rate was actually 145%, to include a previous tariff, but it's unclear if the higher rate would further drag down industry revenue.E-commerce shipments account for an estimated 50% to 60% of China-U.S. air volumes and an estimated 20% of global air cargo volumes, according to logistics providers and the International Air Transport Association. Experts agree that dozens of widebody freighters are dedicated to hauling e-commerce shipments across the Pacific each day from China, but Lossing said he believes an estimate of 100 such aircraft by Netherlands-based consultant Rotate is high. Total air cargo revenue on the China-U.S. trade lane will decrease more than 30% because of the lower volumes caused by the new U.S. trade policies and the lower yields that will follow, Lossing, a former Amazon logistics executive, predicted. When the Biden administration last fall proposed tighter rules for a subset of Chinese goods to qualify for de minimis, a program that allows the duty and tax-free entry of shipments with an aggregate value of $800 or less per person, per day, Cirrus Global Advisors estimated the impact to global air cargo revenue at $3 billion over three years. The estimate for revenue loss has steadily increased with Trump's aggressive posturing against China before and after his inauguration, culminating with a complete ban of all Chinese goods from duty-free treatment, effective May 2. Starting next Friday, retailers will need to file formal customs entries, which require much more information and time than the fast-track de minimis process, to clear individual shipments U.S. Customs and Border Protection says lax data requirements for de minimis shipments makes it difficult to screen for entry of illicit and unsafe goods. Trump canceled de minimis on the grounds that it enables smuggling of the opioid fentanyl and cheap imports that undercut U.S. retailers and de minimis when tariffs were relatively low was mostly considered an inconvenience for large Chinese marketplaces like Temu, Shein and Alibaba because their prices are so low consumers likely wouldn't change their shopping habits if a piece of clothing increased in price by $2 or $3. But the imposition of 145% tariffs has blown up the model of fulfilling orders in China and shipping them by air directly to the customer's residence, which was cheaper and faster than shipping in bulk by ocean to a U.S. warehouse for pick, pack and delivery. Temu, a hugely popular market for cheap goods, and fast-fashion brand Shein last week notified customers on their websites that they will raise prices starting April 25 in response to new trade rules and rising tariffs. The South China Morning Post reported that Temu has already sharply reduced online advertising in the U.S. Despite this, both sites have seen a spike in orders recently as shoppers try to get goods before the tariffs kick in. In addition to higher prices from tariffs, digital markets could lose sales as new customs clearance requirements create friction for customers during checkout, Lossing predicted Friday on LinkedIn. 'How comfortable will U.S. online consumers be to provide more, personal sensitive information to shop on a Chinese website, to facilitate a customs declaration for a B2C shipment,' he wrote. If e-commerce hassles and privacy concerns deter consumers from completing purchases the decline in cross-border parcel volumes and air cargo revenues could be even greater than currently forecast. The Cirrus model, like others, assumes that the steep drop in China e-commerce shipments to the U.S. will significantly reduce demand for freighter aircraft. Airlines will respond by accelerating the retirement of older aircraft and relocating assets to other markets, resulting in excess capacity there and lower average freight rates. The degree to which express carriers and freighter operators reduce flight schedules or remove aircraft from China service will depend on how much consumers pullback from shopping. And If the European Commission follows through on intentions to remove the de minimis exemption for goods valued below $170 and impose a customs handling fee on individual B2C packages the harm to cross-border e-commerce players, including all-cargo airlines, could be severe, Losing told FreightWaves. 'That's kind of the one-two punch that actually would potentially push the revenue loss for air cargo over our current estimate,' he said. And the potential damage to the industry could spread if the Trump administration, as threatened, eliminates de minimis benefits across all nations once systems are in place to collect tariffs from millions of extra shipments per day. But the harm could also be less severe if the President follows a pattern of quickly undoing policy pronouncements and relaxes the tariffs or de minimis crackdown on Chinese e-commerce shipments poses an existential threat for many small-and-medium e-tailers with storefronts selling goods directly from China, as well as logistics providers that handle customs clearance and last-mile delivery for B2C shippers, said Lossing. Large Chinese marketplaces were already preparing for more restrictive de minimis rules by building millions of square feet of U.S. warehouses the past couple of years to support a more traditional B2B2C fulfillment model, logistics executives said. Temu, for example, will consign goods to its U.S. entity, clear them via a formal customs entry, pay duty and truck them to a fulfillment center, where they will be stored, picked, packed and delivered. Another reason for consolidating air or ocean shipments on one customs entry is to reduce the cost for customs brokerage and merchandise processing fees paid to the government per shipment. The cost for customs brokers to file entries will shoot up from 10 cents to $3 per package once the special de minimis pathway is eliminated. The National Foreign Trade Council calculates that without de minimis the average $50 package would require about $31 in paperwork, a brokerage fee of $20, plus tariffs and taxes, which would more than double the delivery cost. In addition to significantly higher import costs, air shipments are expected to take longer for CBP to process under the standard entry process. Lossing said there are tens of thousands of small companies in China that sell on Amazon and other platforms that won't be able to pay the 145% tariff and don't have the resources to use a traditional containerized export model. And many customers will switch to countries like Vietnam, where tariffs are lower, for their online orders. He shot down arguments that the direct-to-consumer model for e-commerce from China is still viable because it allows merchants to defer tariffs until the actual time of sale versus paying them at a U.S. port of entry and it avoids the risk of having cash tied up in unsold inventory while paying for warehousing. On LinkedIn he challenged the assertion on Bloomberg Television by Izzy Rosenzweig, CEO of e-commerce logistics provider Portless, that the benefits of fulfilling individual orders from China to U.S. residents still made economic sense. Rosenzweig said Shein has plenty of margin to absorb higher import costs, while Temu's goal is to fulfill 80% of its orders in the domestic U.S. 'There are some pretty significant data points that show that the China D2C model will not survive at these tariff rates and de minimis closure. I guess only time will tell what happens….The only upside we see for the China-US e-commerce model is air freight rates are set to drop 30%-40% on the trade lane, bringing the cost per parcel down over $1 per unit,' Lossing posted. Aaron Rubin, founder and CEO of ShipHero, a warehouse management software provider for e-commerce brands, said on LinkedIn that FedEx is charging an additional 45 cents per pound on airfreight from China because so many companies are running sales to liquidate their Chinese products for de minimis expires on May 2. New tariffs, higher shipping rates and customer friction together 'will force all companies to create and implement B2B2C clearance models because asking for sensitive customer information at checkout is a nail in the coffin' for direct-to-consumer fulfillment, Lossing said on LinkedIn. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Trump revokes duty-free access for Chinese e-commerce shipments Has the e-commerce bubble burst for air cargo? Trump policies make airfreight shippers jittery about downturn The post Air cargo faces $22B revenue hit when China tariff exemption ends appeared first on FreightWaves. Sign in to access your portfolio
