Page 16 - STAT November 2022 for Magzter

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"With strong demand and a return to
best-in-class operational performance,
we are ahead of our plan for the year on
profitability and expect to be free cash flow
positive. We're working towards full network
restoration by summer of 2023, which sup-
ports a meaningful step up in profitability
and cash flow next year on our path to earn
over $7 of EPS and $4 billion of free cash
flow in 2024," said Ed Bastian, Chief Execu-
tive Officer, Delta. Delta is likely to report
a 5-9 percent increase in total revenue in with a terminal at the Cincinnati/Northern
Q42022 compared to Q42019 and an oper- Kentucky International Airport. Even as
ating margin of 9-11 percent. Amazon Air operates out of 40 US airports,
UPS reported a 4 percent increase in con- this hub has been serving as the central
solidated Q32022 revenue at $24.2 billion on nerve of Amazon’s U.S. air cargo operations
an increase in revenue per piece in both the and supercharging its one-day and same-
domestic and the international segments. day delivery service.
"Consolidated operating profit was $3.1 What has put more wind in the sails of US
billion, up 7.5 percent compared to the third airports is the growth propelled by the rise
quarter of 2021 and up 6 percent on an of e-commerce, a phenomenon that saw
adjusted basis," said a release. increased momentum post the pandemic
Carol Tomé, Chief Executive Officer of Based on current and also boosted the fortune of second-tier
United Parcel Service (UPS) while discuss- airports. Further congestion at big hubs has
ing results with investors and analysts in a market information, aided the growth of second-tier gateways
conference call through live webcast said, the main American for air cargo as well.
"This was our highest third quarter consoli- For instance, Chicago Rockford Inter-
dated operating margin in 15 years. In the carriers continue to add national Airport (RFD) located 68 miles
face of a very dynamic macro environment, northwest of Chicago O'Hare Airport (ORD)
we are demonstrating more agility than belly capacity to their is ranked as the 17th largest cargo airport in
ever before.” fleet and they haven’t North America. Currently, fifteen interna-
Meanwhile, showing great recovery from tional airlines service RFD as a freighter net-
the last two years, Alaska Air Group said achieved pre-pandemic work serving destinations around the world.
cargo revenue increased 14% to $67 million RFD is also home to UPS’s second-largest
and was up 19% to $190 million for the first available capacity yet. hub in North America and is also a major
three quarters. Thus, we probably won’t base for Amazon Air, which is e-commerce
Overall, the parent company of Alaska giant Amazon’s dedicated cargo airline.
Airlines posted a net income of $40 million see a reduction of belly Amazon Air has also recently signed a
and set an all-time record with $2.8 billion in firm agreement to lease ten A330-300P2F
operating revenues . capacity. planes from Altavair, to help fulfil its one-
day delivery promise to Prime customers.
US airports invest in expansion Alvin Tam Hawaiian Airlines will maintain and fly Ama-
TAM Group
In October, the US Department of zon's A330s under it's FAA air carrier certifi-
Transportation’s Federal Aviation Ad- sues, several American airports have amped cate. The initial 10 aircraft are expected to
ministration (FAA) awarded more than up their airport expansion projects. enter into service in 2023 and 2024.
$31 million in grants to expand cargo Air Cargo facility expansion took off at With plans of becoming a major East Coast
infrastructure at nine airports across the large airports like Los Angeles, Dallas/Fort Cargo hub, the Philadelphia International Air-
US to strengthen supply chains and fund Worth, Miami, and Chicago hubs and in port is pursuing a project to more than dou-
key airport cargo projects. cargo-focused airports and second-tier ble its cargo building footprint from currently
The programme pays for the construc- airports in the US. Major US gateways like 600,000 to 1.4 million sq ft. The airport has
tion of new and improved airport facilities, Miami, Dallas/Fort Worth, and Chicago have a $1.2 billion cargo expansion programme
repairs to runways and taxiways, mainte- expanded or are in the process of expand- announced in 2021. The City of Philadelphia
nance of airfield elements like lighting or ing their cargo infrastructure while second- Division of Aviation secured almost $31
signage, and the purchase of equipment tier airports like Philadelphia and Pittsburgh million in funding from Washington for the
needed to operate and maintain airports. are also playing catch up. current fiscal year for the expansion.
Eyeing modernization, rising freighter Last August also saw Amazon open its With its eyes on becoming an international
activity, and to tide over the congestion is- $1.5 billion air hub in northern Kentucky logistics centre, September saw Pittsburgh
14 | NOVEMBER 2022 www.stattimes.com