News

OPINION: Bridging the gap

Written by Stéphane Parrenin | Aug 27, 2025 5:00:00 AM

IN AN era of increasing global demand, digital transformation and customer expectations, the air cargo industry is being pushed to evolve at a pace it has historically struggled to maintain. Meanwhile, the air passenger transport sector — often seen as the more technologically advanced and customer-centric cousin — offers a wealth of proven strategies and systems that air cargo operators can adapt to revolutionise their own operations. The air cargo industry has a real opportunity to fast-track its modernisation by borrowing and tailoring best practices from its passenger counterpart.

Digitalisation and Real-Time Tracking: Borrowing the PNR Model

One of the most advanced systems in the airline passenger space is the ‘passenger name record’ (PNR), which integrates booking, identity and travel information into a single digital profile, accessible across the journey by stakeholders. Cargo currently lacks a similar unified system. Air cargo often relies on fragmented documents such as air waybills, which can still be paper-based and lack real-time visibility. The International Air Transport Association is currently working with the industry on the ‘one record’ data-sharing standard project which is a step in that direction.

By developing a ‘cargo data-sharing standard’, cargo shipments can be assigned a unique digital identity that integrates booking data, customs information, handling instructions and real-time location updates. This would allow all stakeholders—from freight forwarders to ground handlers, trucking companies and customs and quarantine authorities—to access consistent, up-to-date information, dramatically improving transparency and coordination.

Yield Management and Dynamic Pricing

Airlines are mastering the art of dynamic pricing for passengers through sophisticated revenue management systems. They adjust fares in real time based on demand forecasts, booking patterns and external factors like events or weather.

In contrast, cargo pricing is still often static or negotiated manually, with limited responsiveness to real-time demand and capacity. Adopting similar dynamic pricing engines could help cargo airlines maximise load factors and profitability, especially as e-commerce and just-in-time logistics continue to drive variability in demand. Tools that analyse historical trends, lane-specific yields and short-term market signals could optimise pricing per kilo just as airlines do per seat.

Passenger Check-In vs. Cargo Acceptance Automation

Self-service check-in kiosks and mobile boarding passes have revolutionised the passenger experience, thus reducing queue times and freeing staff for more value-added roles. Cargo acceptance processes, however, remain largely manual, often involving paperwork submissions, document checks and physical inspection at acceptance counters.

By introducing automated cargo acceptance kiosks or app-based pre-check processes, the cargo industry could reduce dwell times, lower handling errors and increase throughput. When paired with AI-based document verification and digital customs pre-clearance systems, cargo handover can become as seamless as passenger check-in. 

Customer Experience Platforms

Airlines invest heavily in customer experience — from mobile apps that manage the entire travel journey to CRM systems that personalise interactions. Cargo shippers, on the other hand, often navigate opaque booking processes and poor communication during disruptions.

Air cargo often relies on fragmented documents such as air waybills, which can still be paper-based and lack real-time visibility.

Implementing customer experience platforms tailored for cargo — offering live status updates, automated exception notifications and centralised customer service portals could significantly enhance satisfaction and loyalty. Technologies like chatbots, mobile apps and predictive estimated time of arrival are just as relevant in freight logistics as they are in passenger travel.

Rethinking Payment Models and Distribution Channels

A stark contrast between passenger and cargo operations lies in payment timing and distribution. In passenger aviation, travellers pay for their tickets upfront — often weeks or months in advance — providing airlines with immediate cash flow and a clear demand forecast. In the cargo sector, however, freight forwarders may pay airlines up to 30–45 days after a shipment is uplifted, creating a significant lag in revenue recognition and financial planning. This model also introduces credit risk and reduces the agility airlines need in today’s fast-moving logistics environment.

Furthermore, passenger airlines have long embraced a dual-channel distribution strategy: selling directly to consumers via websites and mobile apps, while also leveraging travel agencies and global distribution systems. Cargo, in contrast, still relies almost exclusively on the indirect model through forwarders and consolidators. While forwarders play a vital, undisputed and fundamental role in managing complexity, airlines could benefit from developing direct digital booking platforms for targeted segments of the market, or for B2C, to stimulate a new demand, much like low-cost carriers bypass traditional distribution to reach consumers directly. A more diversified distribution approach could enhance pricing control, brand visibility and margin capture — especially in high-demand corridors.

Adapting What Works: A Blueprint for Cargo Innovation 

While air cargo and passenger transport serve different customers, their operational backbone is remarkably similar: aircraft, airports, logistics partners and regulatory bodies. The technological and procedural sophistication in the air passenger transport industry has matured through decades of innovation and investment. By selectively adapting these proven systems — especially around digitalisation, customer engagement, dynamic pricing and operational control—the air cargo industry can leapfrog into a more efficient, transparent and competitive future.

It is no longer just about moving goods from point A to point B — it’s about delivering reliability, visibility and value. Passenger aviation has shown how. It’s time for cargo to catch up.

This article appeared in the August | September 2025 edition of DCN Magazine