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by perspectivezoom
2176 days ago
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I just watched a video about this, that basically goes over all your points:
"Air Cargo's Coronavirus Problem" by Wendover Productions
https://www.youtube.com/watch?v=r2oPk20OHBE A summary of the video: - Passenger flight belly cargo used to be responsible for 25% of air cargo capacity, so capacity is severely reduced. - PPE emergency logistics has caused a huge spike in demand, since PPE allocations are currently too volatile for anything except for air cargo. Air cargo prices are high. - Government funding for airlines require pilots to remain on salary, so there's no additional marginal cost of labor. - The biggest marginal cost of a flight, the cost of fuel, has understandably also become very cheap. The end result is that even though it's still quite inefficient as compared to dedicated freight planes, the perfect storm of circumstances makes passenger-planes-as-cargo-planes momentarily profitable. |
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the cost of fuel, has understandably also become very cheap
Apparently, jet fuel was down around 40 cents a gallon. Kerosene, basically the same stuff, was never anywhere near that. Pretty strange.