What's Happening?
Boeing has maintained a strong presence in the global air cargo market, with its aircraft accounting for over 60% of monthly cargo flights. The widebody Boeing 777 and 767 models are particularly prominent, representing nearly 40% of cargo flights in July 2025. The transition from the Boeing 757 to the 737-800 has been notable, driven by increased conversions post-COVID. The pandemic's impact on passenger demand led to a surge in passenger-to-freighter conversions, peaking in 2023 with 73 conversions. Although the conversion rate dropped to 44 in 2024, overall cargo utilization remains high due to an expanded in-service fleet.
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Why It's Important?
Boeing's dominance in the air cargo sector highlights the company's strategic adaptation to market demands, particularly during the pandemic. The shift towards freighter conversions reflects the industry's response to fluctuating passenger and cargo needs. This trend has implications for airlines and lessors seeking to optimize fleet usage and maintain profitability. The continued reliance on Boeing aircraft underscores the company's influence in shaping air cargo logistics, impacting global trade and supply chain dynamics.
What's Next?
The air cargo market is expected to stabilize as passenger demand recovers, potentially affecting the rate of freighter conversions. Airlines and lessors may reassess fleet strategies to balance passenger and cargo operations. Boeing's ongoing delivery and conversion programs will likely continue to influence market trends, with potential adjustments based on economic conditions and trade patterns.
