By Bjorn Fehrm

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Introduction

June 11, 2020, © Leeham News: As international passenger traffic slowly recovers, how much of the cost of flying passengers on the international routes can be paid by the freight under the floor?

We discussed the base parameters to answer this question in last week’s article. Now we calculate the revenues from passengers traffic and Cargo and compare them with the operational costs.

Summary:

• The high freight prices make it possible to resume international passenger flights without losses on routes where there is substantial freight demand.
• As belly freight capacity comes back to the market the freight prices will decline, but by then the passenger load factors should be on the way up.