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Effects of cargo types and load efficiency on airline cargo revenues

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  • Chao, Ching-Cheng
  • Li, Ru-Guo

Abstract

Numerous factors affect air cargo revenue management. Air cargo companies base their cargo charges on whichever is the greater of gross weight or volumetric weight. We developed a cargo consolidation model based on air cargo characteristics, and investigated the effect of cargo density, the Density Ratio of Heavy cargo to Light cargo (DRHL), and the percentage of small cargo on the chargeable weights and revenues of airlines. The empirical results show that a higher DRHL indicates greater chargeable weight, and that as the DRHL climbs to a certain level, the extent of chargeable cargo weights tends to stabilize gradually. The closer the cargo density approaches the most suitable loading density for a flight, the greater the chargeable weight is. A higher proportion of small cargo loaded on an aircraft means higher airline revenue. Our results can effectively combine types of air cargo to increase loading rates and revenues for airlines.

Suggested Citation

  • Chao, Ching-Cheng & Li, Ru-Guo, 2017. "Effects of cargo types and load efficiency on airline cargo revenues," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 26-33.
    • Handle: RePEc:eee:jaitra:v:61:y:2017:i:c:p:26-33
    DOI: 10.1016/j.jairtraman.2015.11.006
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    References listed on IDEAS

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    2. Shaban, Ibrahim Abdelfadeel & Chan, F.T.S. & Chung, S.H., 2021. "A novel model to manage air cargo disruptions caused by global catastrophes such as Covid-19," Journal of Air Transport Management, Elsevier, vol. 95(C).
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    4. Arim Park & Min Kyung Lee & Hyosoo (Kevin) Park & Ji-Hung (Ryan) Choi & Ju Myung Song, 2023. "The impact of security oversight on air cargo price and demand," Journal of Transportation Security, Springer, vol. 16(1), pages 1-22, December.
    5. Chen, Yu-Zhi & Tsoutsanis, Elias & Xiang, Heng-Chao & Li, Yi-Guang & Zhao, Jun-Jie, 2022. "A dynamic performance diagnostic method applied to hydrogen powered aero engines operating under transient conditions," Applied Energy, Elsevier, vol. 317(C).

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