After being acquired by Apollo Global Management, Atlas Air placed its first order for widebody freighter aircraft.
Atlas fleet growth
The announcement comes at a time of growth for the airline. When delivered, today’s order will take Atlas’s 777F fleet to seven aircraft. A spokesperson for Boeing confirmed to Simple Flying that today’s order was placed earlier this quarter and had previously been undisclosed.
In addition to the order announced today, Atlas Air is still expecting to take delivery of two 777Fs of an order for four of the type that the cargo airline placed in 2022. According to a 2022 financial report, the airline had already placed all four of its incoming 777Fs on a long-term ACMI contract with MSC Mediterranean Shipping Company and was expecting to take delivery of the final 777Fs of its previous order before the end of 2023. The same financial report indicated that the airline had already paid more than $185 million in pre-delivery payments to Boeing.
Last year, Atlas Air famously took delivery of the last 747 ever to be built by Boeing. The delivery marked the end of an era for the manufacturer and marked the beginning of a competition between Boeing and Airbus to replace the 747 freighter with the 777-8F and A350F. Atlas Air famously operated the world’s largest fleet of 747 freighters and currently has at least fifty-two of the type in its inventory.
Boeing’s 777F orderbook.
As of press time, Boeing’s order book included sixty unfilled 777F orders from Maersk, Air China Cargo, China Airlines, DHL, Emirates, Ethiopian Airlines, EVA Air, FedEx Express, Lufthansa, Qatar, Silk Way, Western Global Airlines. At least twelve 777F orders remain from undisclosed customers. Around twenty airlines currently operate the 777F. Boeing’s order backlog also includes Volga-Dnepr Airlines; however, it is unlikely those orders will be filled due to current sanctions placed on Russia.
The backlog is partially fueled by retirements of the aging 747-400 platform. For example, 777F operator China Airlines recently placed five of its 747-400Fs for sale while expecting deliveries of three 777Fs by the end of 2024. Another 747-400F operator, Silk Way, took delivery of its first 777Fs this year, placing them in commercial operation as recently as October.
The order from Atlas comes at a time of instability in the air cargo industry. Earlier this year, Air Canada canceled its order for two 777Fs, while FedEx took delivery of the 50th 777F Boeing has produced. However, FedEx has also encouraged its pilots to find work at regional passenger airlines.
The air cargo industry itself has largely been in a slump since the return of belly cargo capacity in passenger aircraft after the pandemic. While cargo airlines have faced challenges in adjusting to the new post-pandemic market equilibrium, increased utilization of freighter aircraft has begun to bring down prices in the Asia Pacific region ahead of a normal busy season for cargo airlines.
What do you think of the recent Atlas Air order for 777Fs? Will Atlas replace more of its 747s with the 777F? Is the air cargo industry making a comeback? Let us know in the comments below.
