Air Cargo

Boeing 747 Freighter Values Soar 114% as Supply Crunch Persists

Boeing 747-400 freighter valuations surged 114% in the third quarter, according to aircraft appraisers IBA. The surge was driven by persistent shortages of large widebody cargo capacity and the enduring value of aging aircraft components. The 26-year-old fleet remains critically important because few alternatives exist for hauling oversized cargo requiring nose-door loading capabilities. Converted Boeing 777 freighters showed more modest gains—17% for 777-200LMRF models and 19% for 777-300ERSF aircraft—indicating solid market demand for newer platforms. However, tight supplies of conversion feedstock and engines at reasonable prices continue constraining the market. Airlines face compounding pressures from elevated engine lease costs and maintenance issues. Air New Zealand previously had to lease additional aircraft and engines when mechanical problems grounded 20% of its fleet, with CEO Nikhil Ravishankar estimating 12-18 months needed to eliminate excess leasing obligations.