THE AMERICAS F
AIR CARG O WEEK
NAVIGATING CHANGE WITH CONFIDENCE
BY Edward HARDY A mid shifting trade policies, division geopolitical at disruptions,
and evolving consumer habits, adaptability is no longer a competitive advantage. It’s a necessity. With this backdrop, the cargo
American Airlines is leaning into innovation, operational stability, and network
partnerships to meet demand with resilience and precision. “The demand is there,” said Greg Schwendinger, President of American Airlines Cargo. “It’s just this year
is not playing out at
all the way we thought it would.” Originally buoyed by positive GDP projections and balanced global capacity forecasts, the industry’s optimism was tempered by a fresh wave of geopolitical volatility. Yet Schwendinger remains confident: “We’re still seeing strong demand. It’s just coming from different geographies than we thought.”
Trade turbulence, demand stability One of the biggest disruptors this year has been the unpredictability of trade arrangements, particularly along the Trans-Pacific corridor. Still, the US consumer remains a key stabilising force .“As long as the consumer in the US continues to spend on discretionary goods, then demand will remain fairly strong,” Schwendinger noted. For American Airlines, whose cargo strengths lie in the transatlantic and Latin American markets, the exposure to recent volatility in Asia is relatively modest. Still, changes like the removal of de minimis exemptions for Chinese and Hong Kong e-commerce shipments have reverberated across the supply chain. “When that exemption was removed, a lot of freighter capacity vacated
immediately the Trans-Pacific market,” Schwendinger
explained. “But we’ve seen general cargo demand come back, and since the arrangement reached between the US and China in May, a bit more e-commerce too. It’s been a fairly decent supply and demand balance.”
Leveraging passenger networks for cargo
advantage A key element of American Airlines Cargo’s stability lies in its ability to leverage the vast passenger network, particularly its bellyhold capacity. Unlike freighter operators that are heavily exposed to cargo-specific fluctuations, American’s routes are passenger-driven, giving the cargo unit more predictability and reach. “Our network really aligns well with where there is cargo demand,”
said Schwendinger. “Even in leisure destinations that aren’t traditional cargo hubs, we’ve found creative ways to route cargo using partner airlines and strategic connections.” Partnerships and creative routing are crucial, especially when operating out of passenger-centric hubs. “We’ve used leisure-focused
Sustainability with substance America’s environmental strategy blends incremental gains with bold future bets. One recent initiative replaced 275,000 pounds of plastic with biodegradable alternatives which is equivalent to removing over 12 million plastic water bottles from circulation. “That’s something we’re really proud of,” said Schwendinger. Larger-scale
efforts aircraft include investment in hydrogen-electric technology and partnerships with sustainability-focused
investment funds. “The challenge is, there’s just not enough global investment in these technologies,” Schwendinger said. “Governments and the private sector need to come to the table. We’re doing our part, but we can’t do it alone.”
www.aircargoweek.com 03 NOVEMBER 2025 ACW
Ground operations and smart hubs As demand intensifies, American Airlines has also been investing heavily in smarter ground operations. The recent upgrade at London Heathrow is a prime example. “We moved into a much larger facility with about 20 percent more space,” Schwendinger said. “That gives us twice the ULD storage capacity and better throughput. Heathrow is our largest international cargo station, so this investment was critical.” Similar care has been taken at key hubs like Miami and Dallas-Fort
Worth. “We’re fortunate because our US facilities are well-sized with ample room to grow,” he added. “We don’t have the space constraints some of our competitors face.”
Digital evolution for speed and transparency On the digital front, American Airlines Cargo has accelerated its push into automation and AI to meet evolving customer needs. “We’re doing an awful lot in the digital space,” said Schwendinger. “That includes API integration with our customers’ systems, expanded services on
AACargo.com, and partnerships with
cargo.one, WebCargo, and CargoAI.” Artificial intelligence is also playing a pivotal role. A new capacity
optimisation tool helps the airline better forecast what customers will tender, reducing overbooking or underutilisation. “Sometimes we actually have a better sense of what’s coming than the customer does,” Schwendinger remarked. AI is also being used to suggest more efficient routings and to provide
real-time policy access to internal teams, streamlining operations and improving customer service. “It’s about creating a seamless customer experience and removing friction at every touchpoint.”
“That gives us twice the ULD
storage capacity and better
throughput.”
destinations as connecting hubs,” he added. “Say, from Asia or the Middle East into Europe with a partner, and then across the Atlantic on our metal into the US”
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