Boeing’s new 777 freighter order to cap off record year for cargo jets
The final days of 2021 delivered another order for Boeing’s freighter program. New York-based cargo carrier Atlas Air announced plans to buy four new 777 freighter jets, which carry a total sticker price of around $1.4 billion.
The order tops a banner year for The Boeing Co (NYSE: BA) in the freight market, with a record number of orders between its converted freighter program and fresh-off-the-line jets. Chicago-based Boeing manufactures 777s at its plant in Everett.
The deal will help Atlas (NYSE: AAWW) with its own growth plans to serve “the evolving needs of the global supply chain,” and “We are excited to expand our fleet and service offerings for our existing and prospective customers with these four new 777s,” President and CEO John Dietrich said in a news release.
Industry analysts have labeled air freight as a growth sector in 2022, as international air traffic remains near 20% of its pre-pandemic volume, restricting the amount of cargo that can be transported in the bellies of those planes. Ordinarily a route for high-value cargo, dedicated freight jets have also seen strong demand as e-commerce activity remains strong and ports recover from pandemic-related congestion.
The order is the first for Atlas since it completed its acquisition of Southern Air in November, giving it access to 777 and 737 models. The company currently flies 14 777 jets and, with 49 jets, has the world’s largest fleet of Boeing 747 freighters. It also operates a passenger fleet of 767 and 747 planes, according to its website.
Boeing cargo jet orders and deliveries status as of end of Nov. 2021:
- 747-8F unfilled orders 6
- 767-2C Military Tanker/Cargo (KC-46) unfilled orders 46
- 767-300ER F unfilled orders 45
- 777-200ER F unfilled orders 65
In addition, Boeing launched two passenger-to-freighter conversion programs, in 2016 the converted aircraft designated as 737-800BCF (Boeing Converted Freighter), and in 2015 the 737-800SF (Special Freighter) program with Aeronautical Engineers Inc (AEI).
The total unfilled order backlogs at the end of 2021 stand at 7,036 commercial jets for Airbus, and 4,210 jets for Boeing.