MIAMI BEACH, Fla. – Etihad Airways has decided to exercise an option for three Airbus A350 next-generation freighters, bringing its total order to 10 aircraft, said Stanislas Brun, vice president of cargo, in an interview with FreightWaves.
The Middle East carrier in 2022 committed to buy seven A350 future model cargo jets but is motivated to take more aircraft amid the relentless growth of e-commerce shipments from Asia to global consumers.
More than 20% of general air cargo volumes worldwide are now considered to come from e-commerce platforms, and upwards of 60% of air shipments out of the greater Hong Kong region originate with online marketplaces in China, according to local airlines and industry experts.
Etihad Cargo operates five Boeing 777 freighters and manages cargo carried in the belly of the airline’s widebody passenger fleet. The airline operated more freighter aircraft in the past but returned some to lessors or sold them because the different types no longer fit with the fleet strategy.
The company board authorized the new purchase of A350Fs earlier this month and management is negotiating the final terms and delivery with Airbus. “In the next five years, we should go from five to 15 freighter aircraft,” said Brun in the carrier’s hospitality suite at The International Air Cargo Association trade show here.
The Etihad contract would put Airbus at 58 orders for the A350 from nine airlines and leasing companies.
Airbus says it expects to begin commercial deliveries of the new plane, which is still in final development and testing, in 2026. Air Lease Corp. is the launch customer. Etihad could receive its first A350F in 2026 or 2027. Entry into service was delayed from the previous target of late 2025 so that Airbus could certify the new cargo door configuration and its impact on the aircraft’s structure.
The A350F will be able to carry a payload of up to 122 tons and fly up to 4,700 nautical miles, according to Airbus. It will feature the industry’s largest main deck cargo door. More than 70% of the airframe is made of advanced materials. Airbus claims the lighter airframe and efficient Rolls Royce engines produce a 20% advantage in fuel burn and carbon dioxide emissions over the legacy Boeing 777 currently in production, as well as the older Boeing 747-400. Boeing’s next evolution in freighter technology is the 777X, which is going head-to-head with the A350 in the large freighter category.
Peak season response
Etihad Airways said in a financial news release last week that it had achieved cargo revenue of $808 million during the first nine months of the year, a gain of 21% from the same period in 2023, which it attributed to improved capacity, volumes and pricing power.
Brun, who joined Etihad in March after heading global airfreight for France-based logistics provider Geodis, said the air capacity crunch in China has forced logistics providers to arrange unusual routings for shipments to Europe and North America.
The air cargo market has shown consistent strength all year without seasonal ebbs, resulting in what appears to be a strong high season without the traditional spike in volumes ahead of holiday shopping events.
Air cargo volumes have increased more than 10% this year from 2023. Red Sea shipping disruptions and the threat of U.S. dockworker strikes has pushed more cargo to airlines. Many shippers procured inventory from overseas months earlier than usual to avoid potential transport delays and give themselves time to find limited aircraft capacity as e-commerce platforms reserve large swaths of supply under long-term contracts.
Airfreight volumes out of China and surrounding countries are so heavy this year, Brun noted, that freight forwarders are even routing cargo by road and sea to leisure destinations such as Phuket, Thailand, and Bali, Indonesia, to catch a ride to Europe and North America on passenger aircraft.
Etihad Airways, for example, operates three flights per day from Phuket, and they are full with cargo, he said.
“The load factor is 100% out of China. Cargo is also coming from Cambodia and Vietnam because there is no other exit,” Brun explained. “Everyone is looking for alternatives to get out of China.”
His comments echo those of air logistics companies that previously described how soaring e-commerce volumes and high yields have pushed lower-value general cargo by truck to airports in Vietnam, Thailand and Malaysia.
“The peak season is passing, more or less, with no big bang. And the creativity of the freight forwarders, plus the airlines, is generating some solutions which are definitely surprising,” said Brun.
China focus
In September, Etihad Cargo and China-based express carrier SF Express signed a memorandum of understanding to take their 18-month collaboration to the next level with the establishment of a joint venture that offers a unified logistics product to customers.
Under the existing capacity-sharing arrangement, Etihad Cargo and SF Airlines conduct freighter flights to their respective home bases in Abu Dhabi and Ezhou to increase connectivity for their respective customers. This year the parties increased freighter frequency on that route and launched a new service between Shenzhen and Abu Dhabi. Etihad helps SF Airlines, the in-house airline of SF Express, reach Europe by transferring parcels in Abu Dhabi to passenger aircraft and freighters servicing the continent.
The joint venture isn’t intended to create a new airline or mesh their global networks, but rather to create a joint product focused on the trade lane between China, Hong Kong and Taiwan on one end and Abu Dhabi on the other, Brun explained. Etihad benefits because SF has more traffic rights out of the China region than Etihad, whereas Etihad can reach more destinations in Europe, India and the Middle East for SF.
Etihad no longer has any freighters operating to the United States after the company pulled the last service to Chicago in July and redeployed it to more lucrative lanes out of Asia.
Etihad Cargo also has a capacity partnership with Malaysia-based Teleport, which uses a small fleet of standard-size A321 converted freighters to ferry goods around Southeast Asia.
Etihad Airways flies out of four U.S. cities – Chicago, New York, Boston and Washington – and also has a daily flight out of Toronto. The airline went to daily service in Boston on Nov. 3, up from four times weekly after starting service there six months ago.
The cargo division in August began a geographical reorganization into four regions designed to improve customer interaction and allow for more tailored responses to specific requirements.
Abu Dhabi Airports and Etihad Cargo are collaborating on construction of a high-tech cargo facility to serve as Etihad’s new cargo home at Zayed International Airport. The modern terminal, which will include a large temperature-controlled area for pharmaceuticals and perishable products, is scheduled to open for business in the first half of 2027.
(Clarification: The story has been updated to make clear that Etihad has decided to place an order for three A350Fs, but has not finalized terms with Airbus.)
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
