The company has been making investments in ground support equipment in preparation for the added capacity, Alaska Air Cargo Managing Director Adam Drouhard said in a blog post on Tuesday. In addition to the two new converted 737-800 freighters it plans to bring on, the airline expects to add about one new Boeing 737-9 to its fleet per week this year, increasing its cargo capacity on passenger jets.
The changes include its first new operating system in 15 years, called iCargo. The technology is expected to improve efficiency and will offer a new interface for its cargo clients, providing “enhanced visibility” for shipments.
“As these initiatives progress, we are committed to communicating about changes well in advance,” Drouhard said. “And we look forward to working together through these transitions, which will create even more opportunities for growth in the years ahead.”
The two new, larger converted freighters roughly double the capacity of the company’s current cargo fleet, which consists of three Boeing 737-700 jets. Revenue from cargo operations grew 12% in 2022 over 2019 levels, making up around 3% of Alaska’s overall revenue.
Converted freighter prices vary depending on the availability of “feedstock” passenger aircraft. The International Bureau of Aviation last year estimated the value of a converted Boeing 737-800 at around $21.2 million. The increased ground infrastructure includes new parking pads and loading containers, Drouhard said, adding that the investments will increase “both reliability and redundancy” for cargo operations in Alaska.
“We are also adding routes and expanding station hours to meet demand in regions like California,” he wrote, noting added hours in San Jose and new air freight routes connecting the West Coast to Alaska and Washington, D.C.