Emerging Opportunities in Transatlantic Air Cargo: Strategic Expansion by LATAM Cargo and Cargojet

The transatlantic air cargo market is undergoing a transformative phase, driven by surging e-commerce demand, evolving trade agreements, and the need for sustainable logistics solutions. Two key players, LATAM Cargo and Cargojet, are leveraging these dynamics to expand their transatlantic operations, positioning themselves as critical nodes in global supply chains. This analysis evaluates their strategic initiatives, financial performance, and alignment with long-term market trends to assess their investment potential.

Strategic Expansion: LATAM Cargo's Transatlantic Push

LATAM Cargo has aggressively expanded its transatlantic freighter capacity, . By deploying Boeing 767-300F freighters, , with new routes such as São Paulo–Brussels (via Recife) and Brussels–São José dos Campos, according to Air Cargo News. These routes cater to high-growth sectors like perishables (e.g., Brazilian mango exports) and industrial goods, addressing unmet demand in European markets, according to AJOT.

The São Paulo–Brussels route, initially operating three weekly flights, , reducing transit times and enhancing reliability for shippers, Air Cargo News reported. Similarly, , supporting pharmaceutical and automotive logistics, AJOT reported. , LATAM Cargo's Chief Commercial Officer, emphasized that these moves align with the airline's commitment to "sustainable and efficient trade solutions," Air Cargo News reported.

Cargojet's European Foray and Partnership Strategy

Cargojet, a Canadian air cargo leader, has extended its reach into Europe by launching a weekly transatlantic freighter service between Canada and Liege Airport (LGG), a key European cargo hub, as Cargojet announced. This expansion, effective November 1, , is part of a broader strategy to capitalize on the EU–US trade corridor's reopening and growing e-commerce demand. The company has also renewed long-term partnerships with DHL and Amazon, , respectively, as noted on Cargojet's earnings call. These partnerships ensure stable demand for Cargojet's services, even amid global trade uncertainties.

Despite a 10% decline in block hours flown during Q2 2025, , outperforming many peers, the earnings call transcript showed. The company's focus on charter and ACMI (Aircraft, Crew, Maintenance, and Insurance) services has insulated it from softer demand in traditional freight segments, CAASINT reported.

Financial Performance and Market Positioning

LATAM Cargo's parent company, LATAM Airlines Group, , , according to a LATAM press release. This growth reflects the airline's ability to capitalize on seasonal demand (e.g., Mother's Day shipments in Colombia and Ecuador) and its expanded transatlantic network. For 2025, , underscoring confidence in its cargo division's resilience, the LATAM press release noted.

, , , CAASINT reported. While the ACMI segment faced headwinds from weaker European traffic, the company's strategic focus on high-margin partnerships and route optimization has mitigated these challenges, the earnings call transcript noted.

Market Trends and Long-Term Growth Drivers

, , according to Grand View Research. Key drivers include:
- : Cross-border e-commerce is reshaping logistics demand, with companies like SAL Logistics expanding into China-Saudi Arabia corridors to meet this need, Zawya reported.
- Trade agreements: The EU–US trade deal is expected to boost ACMI and charter opportunities, particularly for firms like Cargojet, CAASINT noted.
- : Both LATAM and Cargojet are investing in fuel-efficient freighters and optimizing routes to reduce carbon footprints, aligning with global decarbonization goals, and Cargojet announced.

Investment Considerations

While both companies are well-positioned to benefit from transatlantic growth, their risk profiles differ. LATAM Cargo's expansion into Brazil-Europe routes is capital-intensive but offers high-margin opportunities in perishables and industrial cargo. Cargojet's reliance on partnerships (e.g., DHL, Amazon) provides stability but may limit flexibility in volatile markets.

For investors, the key differentiator lies in execution and scalability. , as reported by LATAM and on Cargojet's earnings call, highlight their operational efficiency. However, macroeconomic risks-such as U.S. tariffs and global trade wars-could impact demand, as CCF Group noted with ONE's 75% profit forecast cut.

Conclusion

LATAM Cargo and Cargojet exemplify how strategic route expansions, technological modernization, and partnership ecosystems can unlock value in the transatlantic air cargo sector. With the market projected to grow steadily through 2030, according to Grand View Research, these firms are well-positioned to capitalize on long-term trends. Investors seeking exposure to this sector should monitor their ability to adapt to trade policy shifts and sustain margin growth amid evolving demand patterns.