ALEXANDER CAMPBELL / LONDON

US carrier says that plans to extend its cargo reach are well in hand, with services planned to start later this month

United Airlines plans to expand its cargo operation by returning to the all-freight business, which it left in 2000. The airline says it "is now in high gear", with services planned to start later this month. But earlier reports of an aircraft leasing deal with Atlas Air have been denied by both parties, and United has still not announced an aircraft choice.

United's cargo operations are performing better than its passenger business, with cargo revenue rising 3% to $318 million in the first half of 2003, while passenger revenue fell 13% to $5.2 billion. Worldwide, the cargo sector has recovered better than the passenger sector, according to the International Air Transport Association; the first half of the year saw 7.3% growth in freight traffic against 2002, while passenger traffic was 7.1% down. Fastest growth was in the North American and Asia-Pacific markets.

United is believed to have planned to start operations on routes between the USA and Asia using two Boeing 747-200F or -400F freighters, leased from Atlas. However, the airline says it has yet to sign a leasing deal, and has made no decision either on routes or on aircraft types.

United's freight division, United Cargo, flies only belly cargo services in United's passenger fleet. Its previous operation used four McDonnell Douglas DC-10-30F freighters and three DC-10-30CF combi aircraft. It suspended services from the USA to Japan and the Philippines in September 2000, after heavy losses from high maintenance costs and slack Asian demand.

Source: Flight International