With few passengers, ANA and JAL haul cargo to stay aloft

ANA Holdings and Japan Airlines have pivoted heavily to international freight transport in an attempt to offset the crippling loss of passenger traffic caused by the coronavirus pandemic. Japan's two largest airlines are in the throws of major slides, with the companies logging a combined $1.9b net loss for the April-June quarter as the pandemic keeps borders closed and travellers wary of enclosed spaces. Last month, Nikkei reported that ANA was in talks for $4.6b in loans from the Development Bank of Japan as well as private financial institutions. The shift to freight has been a silver lining to the dark economic clouds -- and has been a fairly easy transition. Even during normal times, passenger aircraft typically carry freight in cargo holds, along with luggage. But because of the sharp drop-off in air travel this year, operators have opted to hire charter flights to transport goods. Throughout all of last year, ANA had operated only about 10 chartered flights. Now the number has jumped to 400 scheduled for September alone. Subsidiary ANA Cargo stepped up chartered freight transport in February. The number of chartered cargo flights per month has hovered around 400 since spring. Eleven aircraft in its fleet are in full operation. The freight primarily consists of semiconductor materials or products related to computers. The planes also carry automotive components and personal protective equipment, including face masks, for health care workers. Because of the loss of passenger flights and their cargo space, shipping rates have jumped. Freight rates for routes connecting to Shanghai and North America are now about $4.80 per kilogram, according to TAC Index, or nearly 50% higher than a year earlier. Seeing a chance for potential revenue, ANA will put additional freight-dedicated aircraft into service in place of idled passenger planes.<br/>