AMERICAS: AA Cargo sees strong Q1 volumes

American Airlines Cargo volumes showed some strength in the first quarter, a trend that the head of the company’s cargo division attributed partly to the improving economy. “The consumer is buying again,” said Dave Brooks, president of American Airlines Cargo, although he noted that the carrier’s volumes were likely boosted by the fact that substantial […]


American Airlines Cargo volumes showed some strength in the first quarter, a trend that the head of the company’s cargo division attributed partly to the improving economy.

“The consumer is buying again,” said Dave Brooks, president of American Airlines Cargo, although he noted that the carrier’s volumes were likely boosted by the fact that substantial freighter capacity is still parked.

Regardless, Brooks said in an interview with Dow Jones that international volumes were up 20 to 30 per cent in each month of the first quarter, compared with the year-ago period, fueled mostly by shipments out of Asia to Europe, North America and South America. He cited shipments of automotive parts and high-tech gear as particularly strong. “All of that is very, very encouraging,” he said.

Revenue at American’s cargo division slumped 16.4 per cent in the fourth quarter, generating slightly more than 3 per cent of AMR’s $5.06 billion quarterly total. Brooks said he thinks total 2010 cargo revenue could be up 15 to 20 per cent from 2009, when volume was off about 25 per cent.