ABSTRACT
Many of the concepts and principles of airline economics discussed so far apply equally to the cargo side of the industry. At the same time, particular issues and difficulties arise in the carriage of air freight which require separate analysis and treatment. The importance of freight is too often underestimated, yet just over one-third of the output of the international airline industry is generated by freight rather than passengers and for some airlines it is considerably more than this (Table 1.6). The contribution of freight to total revenue, however, is only oneeighth, but it makes a significant contribution to the profitability of many air services. In order for it to continue to do so, airline managers need to have a clear understanding of the air freight industry and of the particular problems facing it.
