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Air Canada, particularly hurt by stringent travel restrictions in its home country, continues to get a lift from its cargo business, aided by frustrations about bottlenecks and shipping delays for cargo on ships. Air Canada’s story is yet another sign that that cargo will continue to be an increasingly strong revenue source for airlines even after the pandemic recedes. The carrier is converting part of its retired Boeing 767-300ER fleet to freighters — Air Canada’s first dedicated freighters — and expects to take delivery of two this year with more to follow next year. Initially, the aircraft will fly routes between Toronto and Miami, Quito, Lima, Mexico City, and Guadalajara. And in 2022, as more freighters join the fleet, Air Canada expects to add Halifax, St. John’s, Madrid, and Frankfurt to its cargo network. During the pandemic, Air Canada flew more than 9,000 cargo-only flights on 11 Boeing 777 and Airbus A330 aircraft that were temporarily converted into freighters by removing seats in the passenger cabin, as well as on unconverted widebody passenger aircraft on cargo-only flights. Canada’s strict quarantines and entry requirements essentially stalled Air Canada’s international and US transborder passenger network during the pandemic and forced Porter Airlines and Transat to suspend all flights until later this summer.<br/>

Lufthansa said it aims to boost its return on capital employed and laid out plans for a capital increase as it prepares for a business recovery amid an easing coronavirus pandemic. The largest German airline aims to have an adjusted EBIT margin of at least 8% and an adjusted ROCE of at least 10% in 2024, it said late on Monday. The group added it had mandated banks to prepare a possible capital increase, though size and timing have not yet been determined and the German state, which has bailed out the airline during the pandemic, has not yet given its approval.<br/>