A focus on network expansion and multiple initiatives to improve customer service appears to be paying off for Avianca’s cargo division, as it outperformed the vast majority of the air cargo sector in the first half of 2023.
While most airlines saw cargo business tumble by a third to a half during the period, the Colombia-based carrier’s cargo revenues only contracted 17% from a year ago to $326 million. Sales were 30% higher than budgeted because management anticipated the market normalizing after a supercharged two years of freight demand associated with pandemic distortions of the global economy.
More than 50% of the airline’s transported cargo is flowers, fruit, vegetables, meat and other perishable goods. Avianca Cargo is also investing in its airport facilities, revamping warehouses to make the layout more usable, expanding refrigerated rooms in Medellin and adding roller beds in Bogota and Miami that can move palletized cargo between handling equipment.