With over 2,200 freighters worldwide and a market projected to reach $6.18 billion by 2032, conversions help airlines meet cargo demand amid production delays and evolving trade challenges.
The global freighter conversion market is experiencing unprecedented growth, driven by surging e-commerce demand, supply chain resilience requirements, and the aviation industry's continued recovery. As airlines reassess their fleet strategies in a post-pandemic world, passenger-to-freighter (P2F) conversions have emerged as a critical solution to meet evolving cargo demands while maximising the value of ageing passenger aircraft.
Market growth trajectory
The freighter conversion market is on a robust growth trajectory that reflects the fundamental shifts in global logistics and air cargo demands. According to Cirium, a leading aviation analytics and data platform, the global freighter fleet has grown steadily over the past two decades. As of mid-2025, there were over 1,400 widebody and more than 800 narrowbody freighters in service.
Multiple market research firms have identified similar growth patterns. Data from Fortune Business Insights indicates that the global freighter aircraft market was valued at USD 4.25 billion in 2024 and is projected to grow from USD 4.16 billion in 2025 to USD 6.18 billion by 2032.
“The freighter conversion market presents both significant opportunities and notable challenges. The demand for high-capacity widebody freighters continues to grow, especially for transatlantic and Asia-Europe trade routes,” says Rytis Kriunas, Deputy CEO at AviaAM Leasing, a global aviation holding company specialising in aircraft acquisition, leasing, and sales.
Fewer P2F conversions in 2025
Even with a steady long-term growth projection, 2025 appears somewhat unstable for the P2F conversion market. Cirium data shows that P2F activity slowed significantly this year, particularly for the Boeing 737-800, with only 15 conversions completed. Around 48 aircraft, mostly widebody freighters, are scheduled for conversion in 2025.
“The feedstock market for Boeing 777-300ER aircraft remains tight. Due to delays in new aircraft deliveries from OEMs, many lessors are extending leases on their existing widebody fleets.”
Rytis Kriunas, AviaAM Leasing
The conversion backlog has fallen to about 320 units, primarily comprising the Boeing 737-800, Airbus A321, Airbus A330, and Boeing 777-300ER. However, some of these backlog aircraft may return to passenger service due to rising conversion costs, weakening freighter demand, and delays in supplemental type certificate (STC) approvals.
The Cirium report says the rise in widebody freighters has been driven by deliveries of new factory-built aircraft, Passenger-to-Freighter (P2F) conversions, and the return of older freighters to service during the pandemic. Narrowbody freighters also saw strong growth but now face an oversupply challenge, with about 26% currently in storage compared to 13% for widebodies, both rates still above pre-pandemic levels.
Beyond these trends, the global P2F conversion market is also experiencing shifts in 2025 due to evolving trade dynamics and economic conditions.
“We see e-commerce and air freight growth coming together with a strong demand for large widebodies as replacement aircraft for fleet modernisation (especially successors for the 747s). In addition, delays of new freighter developments (777-8F and A350F) are further constraining the capacity in the LWB segment. In the short term, this gap can hardly be filled with converted 777s only, because of certification challenges and a shortage of feedstock aircraft. However, Backbone Freighter Leasing benefits from being part of the well-established Dr. Peters Group, managing a number of 777-300ER aircraft well suited for conversion. Furthermore, it is becoming increasingly evident that KMC is taking the right approach with its risk-mitigating design philosophy,” says Christian Mailly, Head of Aviation, Dr. Peters Group, and Managing Director of DS Aviation and Backbone Freighter Leasing.
Key aircraft types for conversion
The conversion market has gravitated toward specific aircraft models that offer optimal economics and operational flexibility. The Boeing 777-300ER, 767-300ER and 737-800, remain key players, but it is not an entirely Boeing story. The Airbus A321-200 and A330-300 are also popular choices for freighter conversions.
Boeing in the P2F spotlight
Boeing aircraft have long dominated the conversion market, with the 737-800 and 767-300ER leading the segment. However, the American manufacturer has announced plans to end production of the 767-300F in 2027, shifting exclusively to the 767-2C variant to support the KC-46A tanker programme. Boeing will also end production of the current widebody factory-built 777 freighter in 2027.
The most significant development in freighter conversions is the emergence of multiple Boeing 777-300ER passenger-to-freighter (P2F) programmes. Given how successful the passenger Boeing 777-300ER has been at almost 850 orders, it's no surprise to see demand for the converted freighter through the roof.
The three largest Boeing 777-300ER freighter conversion programmes have been launched by Israel Aerospace Industries (IAI), Mammoth Freighters, and Kansas Modification Center (KMC). However, all three programmes are still awaiting their STC.
IAI's leading position
IAI has emerged as the frontrunner in 777-300ER conversions. Its 777-300ERSF programme, known as “The Big Twin,” was launched in 2019 in partnership with AerCap, with Kalitta Air as the launch customer.
In a recent statement to The STAT Trade Times, the company said it has received approximately 60 orders for conversions. However, the STC has been delayed, with the company noting that it is “in its final stages” with both the Civil Aviation Authority of Israel (CAAI) and the Federal Aviation Administration (FAA), adding, “We hope to receive the STC within the next several weeks.”
An IAI 777-300ERSF in Kalitta Air livery
The company has recently given the go-ahead for its 777-300ERSF freighter to handle the Rolls-Royce Trent 1000 engine, underscoring a significant boost in operational versatility.
The company also runs a conversion programme for the Airbus A330-300, known as the A330-300BDSF. “Our prototype is in an advanced stage. All floor beams have been replaced, and we cut the cargo door on July 17. We expect to receive our CAAI and FAA STC by mid-2026,” the company said.
Additionally, the company is exploring the possibility of converting Boeing 787 Dreamliners into freighters. “As a cargo conversion house and world leader for the last four decades, we are always thinking about our next programme, and the B787 platform is a candidate for cargo conversion. We are currently in the preliminary feasibility study stage,” IAI said.
Mammoth Freighters' innovation
Mammoth Freighters is pushing the boundaries of 777 conversions with both 777-300ER and 777-200LR programmes. Known as 777-300ERMF and 777-200LRMF.
Brian McCarthy, VP of marketing and sales at Mammoth Freighters, provided an update on the programme, saying, “We will be conducting 200LR flights throughout August, but I can report that all of our ground smoke flights have been completed with exceptional, successful smoke detection times. We nailed the design, and it works great. All ground smoke detection, smoke penetration, and smoke migration tests are now complete, and we see no issues arising when we take to the air with the same tests.”
Speaking on the STC, he explained, “Since the 200LR STC is a prerequisite of the 300ER certification, lots of grease is going to the 200LR. The 300ER STC is dependent on the 200LR being certified because we can’t amend the 200LR STC and certify without the STC issuance for the 200LR. If we are Type Inspection Authorised (TIA) in September, then we think that we will be done with all of our flight testing and data submittals by about November/December for the 300ER. This would then suggest that we will be “TIA” by December 2025. Then we would be simply waiting for the FAA to finish up the administrative review of the final reports and data submittals in January after the holidays. The holidays will definitely get in our way.”
The company’s order book stands at 35 firm orders, with several additional customers in discussions pending STC issuance. Jetran Ltd, based in Horseshoe Bay, Texas, holds the majority of 777-200LR orders, while Avia Solutions Group accounts for six of the 300ER orders. End operators include Qatar Airways and DHL for many of the 200LRs, and one of Avia Solutions Group’s AOCs, BBN Istanbul, will take the 777-300ERs as they are completed.
Avia Solutions Group’s B777-300ER being converted under Mammoth’s 777-300ERMF programme
Regarding the intended customers and delivery timeline, Kriunas of AviaAM Leasing said all six converted Boeing 777-300ERMF aircraft are planned to be dry leased to its sister company, BBN Airlines Turkey, for Aircraft, Crew, Maintenance, and Insurance (ACMI) operations. “Given that the certification for the prototype aircraft is still pending, it would be premature to specify exact delivery dates. However, the first aircraft is expected to enter service by summer 2025, with the remaining units delivered progressively through 2027. The first prototype aircraft has reached a key milestone with the successful installation of the main cargo door, which is notably 16 inches wider than that of the standard Boeing 777F, enhancing cargo flexibility and operational efficiency,” he said.
Kansas Modification Center's market entry
KMC has secured significant orders for its 777-300ERCF programme, with 10 aircraft ordered through Backbone Freighters Leasing, a division of Dr Peters Group.
“We currently have 10 orders with KMC in place. We are, among others, in discussion with flagship cargo airlines, but don’t want to disclose at this stage,” says Mailly of Dr Peters Group.
In a statement to The STAT Trade Times, a KMC spokesperson said, “The STC prototype aircraft (tail number ND118S) will undergo its scheduled C6 Check in parallel with conversion work. Ground and Flight Testing are planned for early next year, with STC issuance targeted for October 2026, subject to regulatory coordination. European Union Aviation Safety Agency (EASA) application is expected in H1 2026, with approval anticipated by year-end.”
Upcoming milestones for the programme include installation of the Main Cargo Door, completion of structural modifications (floor beams, systems integration), company-level Ground and Flight Tests (Q1 2026), Cargo Handling System installation (H2 2026), and final certification testing to validate freighter capabilities.
Unlike Mammoth and IAI’s 777 freighters, which have a main cargo door positioned at the rear, KMC’s 777-300ERCF is designed with a forward-positioned main cargo door.
The spokesperson said the 777-300ERCF programme is advancing steadily, with approximately 85% of engineering drawing releases completed. While modest delays have occurred due to supply chain issues, particularly with fasteners and fuselage skin components, structural preparations are progressing, including shoring and skin cutting near the door surround area. Installation of the Main Cargo Door is targeted for October.
Is 777 feedstock readily available for conversion?
Kriunas, of AviaAM Leasing, said, “The feedstock market for Boeing 777-300ER aircraft remains tight. Due to delays in new aircraft deliveries from OEMs, many lessors are extending leases on their existing widebody fleets, which significantly reduces the availability of aircraft suitable for conversion. This scarcity has already led to a noticeable increase in the market price of used 777-300ERs. As a result, sourcing viable feedstock continues to be one of the most pressing challenges in executing widebody conversion programmes.” He mentioned this as one of the major challenges currently facing the freighter conversion market.
EFW: Airbus conversion specialist
Elbe Flugzeugwerke (EFW), a joint venture between ST Engineering and Airbus, remains a key player in the Airbus conversion market. The company has established expertise in A320, A321, and A330 conversions, offering certified solutions with OEM support and backing. Recently, EFW received validation of the Supplemental Type Certification (STC) for its Airbus A320 and A321 Passenger-to-Freighter (P2F) conversion programmes from the Civil Aviation Administration of China (CAAC).
Airbus A330P2F conversion by EFW
As of June 2025 data, EFW has delivered 116 Airbus P2F aircraft to customers worldwide, including 60 wide-body freighters.
What’s new with next-generation freighters?
While the conversion market captures significant attention, new-build freighter programmes continue to evolve, creating both competition and complementary opportunities for converted aircraft.
Boeing's 777-8F represents the manufacturer's next-generation approach to large freighter operations. With its advanced fuel efficiency and extended range capabilities, the 777-8F targets the premium end of the large freighter market. However, rather than directly competing with 777-300ER conversions, it serves operators requiring maximum payload capacity and the latest technology.
Since Boeing launched the programme in 2022, airlines and cargo operators have ordered 59 777-8 freighters. Boeing aims to deliver the first 777-8 freighter in 2028. Boeing began production of the 777-8 freighter by drilling the first hole in a wing spar, a critical structural component of the aircraft.
Airbus entered the large freighter market with its A350F programme, designed to compete directly with Boeing's offerings. The A350F brings modern fuel efficiency and advanced avionics to the freighter segment, appealing to operators focused on environmental performance and operational costs.
“We see e-commerce and air freight growth coming together with a strong demand for large widebodies as replacement aircraft for fleet modernisation.”
Christian Mailly, Dr. Peters Group
As of July 2025, Airbus reports a total of 65 A350F aircraft orders worldwide. The company has completed the first horizontal stabilizer (HTP) for the A350F freighter at its facilities in Spain, marking a significant production milestone. Airbus is building two A350F units for flight testing scheduled in 2026 and 2027, with the aircraft expected to enter service in 2027.
The Cirium report says that with Boeing’s production of the 767 and 777 set to end in 2027 and current order slots likely fully booked, the market may face a potential supply shortage. Furthermore, ongoing OEM delivery delays and uncertainty surrounding Boeing 777X certification could widen the production gap in the short to medium term.
Embraer has expanded beyond passenger aircraft with its E-Jets Freighter programme, targeting the regional cargo market. The E190F and E195F offer right-sized capacity for thin routes and specialised cargo operations. At this year’s Paris Airshow, Brazilian aircraft maker Embraer announced an expansion of its partnership with Regional One, doubling the initial order by adding two more passenger-to-freighter (P2F) conversions. Regional One, which originally ordered two E-Freighter conversions from Embraer in 2022, has named Bridges Air Cargo as the launch operator of the E190F. The first of these freighters is expected to enter service with Bridges Air Cargo.
The relationship between new production freighters and conversions has evolved into market segmentation rather than direct competition. New-build aircraft target operators requiring the latest technology, maximum performance, and long-term fleet standardisation. Conversions serve operators focused on cost-effective capacity, proven reliability, and shorter payback periods.
Current trends in freighter valuations and lease rates
An analysis of Cirium market values for selected key 20-year-old freighters shows that market values have remained resilient over time, especially for widebody freighters. The main exception is the Boeing 747-400F, whose value has declined, largely because its market value is now driven primarily by its engines. A similar pattern is seen in the leasing market, where lease rates have generally stayed strong after the volatility experienced during the pandemic.
Sustained demand for widebody freighters, coupled with ongoing delays in new factory-built freighter deliveries, slow progress in certifying the Boeing 777 P2F conversion programme, rising maintenance costs, and limited MRO slots, are all contributing to the resilience of current market values. These factors are expected to keep upward pressure on freighter valuations until supply-side constraints ease. As a result, market values are likely to remain robust in the near term.
A closer look at the stored fleet shows that a larger share of inactive narrowbody freighters, especially Boeing 737-800s and Airbus A321s, are owned by lessors compared with the widebody freighters. Many of these parked narrowbodies are either awaiting conversion or facing difficulty finding lessees willing to pay a rent premium due to high feedstock and conversion costs. Furthermore, the overheated engine leasing market may prompt lessors to lease engines separately, aiming to secure better premiums than leasing the entire freighter.
As the global air cargo landscape continues to evolve, the freighter conversion market stands at a pivotal crossroads. Beyond merely addressing immediate capacity needs, these conversions are shaping the future of flexible, adaptive cargo operations in an increasingly unpredictable economic and regulatory environment. The interplay between innovative conversion technologies and emerging market demands will not only redefine fleet strategies but also catalyse new business models in air logistics. Success will depend on companies' abilities to navigate certification complexities, manage supply constraints, and deliver high-quality conversions that meet evolving customer requirements.