by Donald Wood
Last updated: 11:53 AM ET, Tue March 17, 2020
As airlines around the world are asking for government assistance due to the financial impact of the coronavirus, many carriers have started flying cargo on passenger jets to make money.
According to Reuters.com, rates in the air cargo market are surging right now as a result of the loss of capacity in the bellies of passenger aircraft following the suspension of service by the top airlines.
Carriers such as Cathay Pacific and Korean Air Lines announced they would fly planes without passengers to transport cargo as a result of the high demand. Qantas also said it would replace lost capacity from regularly scheduled services with freight-only flights.
Freight Investor Services told clients Monday that prices are skyrocketing across all Asia-Pacific routes and "2020 is fast becoming the year of the freighter." Singapore Airlines also reported a higher cargo load factor in February than the previous year.
"It's now fair to call this the single biggest shock that global aviation has ever experienced," Qantas CEO Alan Joyce said in a statement. "Our goal is to protect as many jobs as possible and to make sure we remain strong enough to ride this out."
Carriers in the United States are also feeling the pinch, as American Airlines announced Saturday it would be forced to cut 75 percent of its international capacity through May 6 to combat the loss of revenue from decreased customer demand.
United Airlines also revealed it would reduce capacity for April and May by 50 percent and cut corporate officers' salaries in half. In addition, carriers are taking a more aggressive approach to cleaning and disinfecting their planes in the wake of the spread of the coronavirus.
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