On 28JUL24, CargoForwarder reported exclusively about the cargo flight suspensions between the EU and South America planned by Qatar Airways Cargo and Martinair Cargo, coming into effect during the course of SEP24. In a LinkedIn post published yesterday (03AUG24), LATAM Cargo announced that it would be filling the gap by adding additional capacity to its currently ten weekly flights between Europe and South America.
The cargo airline did not specify the routing but according to information provided by market participants, the B767-300F will be operated weekly between Amsterdam, Viracopos, and Santiago de Chile. This additional capacity offered by LATAM Cargo as of 01OCT24, represents a 20% increase in its current offering to the markets on both sides of the Atlantic Ocean. “It is one step forward,” conciselyAlfredo Noguerales Fraguas, Senior Manager EMEA LATAM Cargo commented succinctly, applauding the management decision.
Fast closing of a gap
The carrier’s move was foreseeable, even if not necessarily expected at this speed. Ultimately, however, LATAM Cargo has seized the opportunity enabled by the partial withdrawal of QR and MP, to up its market share and gain new customers. Soon, the airline will operate 12 weekly flights across the South Atlantic, up 2 from currently 10, offering its customers a weekly capacity of more than 600 tons. In a LinkedIn post, LATAM Cargo management points out that the decision further strengthens the airline’s leading position. This particularly benefits those forwarders looking to transport general cargo and pharmaceuticals between Europe and South America, as well as those shipping flowers, vegetables and fruit out of South America.
MP and QR shift operations from Latin America to East Asia
Currently, the Santiago, Chile-based carrier operates a fleet of 19 Boeing 767-300 freighter aircraft. In addition, it offers ample lower deck capacity on its passenger B777, B787-9 and B787-8 jetliners, totaling 1,700 tons serving eight destinations in South America and ten in Europe.
As reported, the cargo airlines MP and QR had recently announced that they would be discontinuing some of their cargo flights to South America and shifting them to East Asia instead. The rates there are comparatively higher and the utilization of the routes between East Asia and Europe is more balanced, according to MP representatives.
Favorable timing
The fact that some of their routes are now being taken over by LATAM Cargo was to be expected and should not come as a great surprise. After all, where there is a gap in air traffic, there are usually others queuing up to fill it.
For LATAM Cargo, however, the timing of the increase in capacity is extremely favorable: “We are approaching the beginning of the peak season, so the increase in our flights comes just in time,” said an airline representative. Yet, he qualified that his market division expects just a small to medium peak by the end of the year, rather than a really big boost.
