Chinese air cargo transport has continued on an upward trend in recent months, as more carriers embrace the cargo business. Hainan Airlines last week launched a new cargo flight route from Haikou to Sydney, the second fixed intercontinental cargo flight after the one from Haikou to Paris. The carrier said the plane will carry local vegetables and fruit to the city, and return with Australian milk powder, health products, and e-commerce goods. China's JD also launched its first cargo flight between China and the U.S., following the launch of its China-Thailand charter flight at the end of May. China Eastern Airlines opened a route to Los Angeles three times a week.
The development of e-commerce and express delivery in recent years has played a significant role in driving the growth of air cargo in both China and around the world. Shares of Eastern Air Logistics, the air freight subsidiary of China Eastern Airlines Group, jumped 44% on June 9 upon their debut on the Shanghai Stock Exchange. Eastern Air Logistics' initial public offering (IPO) raised CNY2.4 billion. Airports have also benefited from the development of the cargo business. In the first five months of this year, cargo flights and cargo throughput at Shanghai's two major airports recorded a year-on-year increase of 27.08%. Pudong International Airport, the world's third largest air cargo hub, had a cargo throughput of one million tons in the first quarter this year, while also setting new highs in a single month in April and May. Shanghai Pudong International Airport Cargo Terminal Co said there are 64 airlines that use the terminal, 80% of them from abroad. The International Air Transport Association (IATA) said that air cargo demand continued to outperform pre-Covid levels with demand up 12%. Asia-Pacific airlines saw demand for international air cargo increase 9.2% in April compared to the same month in 2019.
Due to China-U.S. trade disputes and the grounding of the 737MAX, Boeing's passenger aircraft sales in China are facing difficulties, but with the surge in e-commerce demand, Boeing is optimistic about the sales prospects in the Chinese freighter market. Boeing said that the freight aircraft business has great room for growth compared to commercial passenger flights. The current domestic cargo aircraft fleet in China has about 200 planes. Boeing predicted that in the next 20 years, the size of the fleet is likely to increase nearly three times to about 750, the Global Times reports.
