April 8, 2025 | BY Dan Boaz

Air Charter Guide

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Contents

The North American air cargo charter industry has become a critical component of global supply chains, offering on-demand freight capacity and flexibility. In the United States alone, the chartered air freight market was estimated at $22.9 billion in 2024, with steady growth forecast through the decade. Below, we discuss key industries that rely on cargo charters, followed by a glossary of important charter terms. We’ll also highlight current trends, emerging technologies, and major players (companies and aircraft types) shaping the market.

This sector saw a significant boost during the COVID-19 pandemic, when grounded passenger fleets led to a shortage of belly-cargo capacity (over half of air cargo normally flies in passenger aircraft holds). Cargo charter rates spiked as airlines repurposed passenger jets for cargo and rushed to transport medical supplies and personal protective equipment.

According to IATA, air cargo charter bookings even increased by 15% in 2023 (largely driven by pharmaceuticals and high-value goods) as companies sought reliable transport amid ongoing supply chain disruptions. North America remains a dominant region in air charters, accounting for over 40% of the global market. Major U.S. cargo operators have expanded fleets of freighters to meet surging demand. These trends underscore the charter industry’s growing role in enabling time-critical logistics.

THE RISE OF AIR CHARTER SERVICES

Beyond the pandemic spike, recent growth in air cargo charters has been fueled by e-commerce demands and industry-specific needs. As scheduled capacity fluctuates, many sectors have embraced air charters as a “first-class” freight solution for speed and security. Below, we discuss key industries that rely on cargo charters, followed by a glossary of important charter terms. We’ll also highlight current trends, emerging technologies, and major players (companies and aircraft types) shaping the market.

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Industry Trends and Major Players

Digitalization and innovation are transforming the air charter landscape. Air charter brokers and carriers are adopting online platforms and AI-driven tools to streamline charter booking and operations. According to the FAA, digital tech has improved flight and route planning efficiency by about 20% in recent years. Modern charter marketplaces now allow clients to get instant quotes and availability, reducing the traditional back-and-forth of charter arrangements. Artificial intelligence is also being used for predictive maintenance (minimizing aircraft downtime) and dynamic pricing models that adjust charter rates based on real-time demand, fuel costs, and route data. These innovations make charter services more accessible and responsive.

E-Commerce

On the demand side, e-commerce continues to be a key driver. The boom in online retail has stretched traditional logistics, especially during peak seasons, leading companies like Amazon, UPS, and DHL to supplement capacity with chartered freighters. During the height of supply chain disruptions, many retailers chartered entire aircraft to ensure inventory arrived in time for holidays. The result has been a blurring of lines between scheduled cargo and charter – even integrators (express carriers) and freight forwarders regularly arrange ad-hoc charters to meet overflow demand.

Sustainability

Another major trend is a focus on sustainability in air transport. Leading charter operators are investing in sustainable aviation fuel (SAF) and carbon offset programs to reduce their environmental footprint. Some companies have committed substantial funds to develop greener propulsion; for example, business jet charter firms (like NetJets) are investing in hybrid-electric aircraft technology. In the cargo realm, operators are exploring the future use of electric cargo planes and hydrogen-powered aircraft for short-haul missions. While these technologies are still emerging, pressure to cut carbon emissions (e.g. abiding by new emissions standards and the EU’s Fit for 55 targets) is driving the charter industry toward more sustainable practices.

The Future of Cargo Charter

Looking ahead, the North American cargo charter sector is expected to remain robust. Industry forecasts project continued growth as companies emphasize supply chain resilience – charters provide a valuable contingency to keep goods moving in uncertain times. The lessons of the pandemic, combined with ongoing globalization (and occasional geopolitical disruptions), have reinforced the charter industry’s value proposition: speed, flexibility, and control.

Key Industries That Use Air Cargo Charters

North American air cargo charters serve a diverse range of industries, each with unique logistics challenges. Companies turn to charter flights when conventional shipping (scheduled flights, ocean, or ground) is too slow, inflexible, or capacity-constrained. Here are some of the major industries utilizing air cargo charters:

The air cargo charter industry in North America has evolved into a dynamic, solution-oriented sector of air logistics.

The industry’s growth post-2020 reflects both the challenges and opportunities in global trade – when conventional transport falters or special requirements arise, air charters fill the gap.

Automotive Air Charter

Auto manufacturers rely on charters for just-in-time delivery of parts (e.g. engines, electronics) to keep assembly lines running. A single delayed part can halt production and cost millions, so charters act as a lifeline to avoid factory downtime. For urgent recalls or to recover from supply interruptions, entire aircraft are chartered to rush components to factories or dealerships.

Air cargo charter services also play a critical role in supporting the global supply chain of the automotive industry, especially when shipping oversized or high-value components that cannot be accommodated by standard freight options.

Charter flights offer the flexibility to operate outside regular schedules and access remote airports closer to manufacturing plants or suppliers. As automotive production becomes increasingly globalized and time-sensitive, chartered air transport has become an indispensable tool for minimizing risk and maintaining competitive delivery timelines.

Pharmaceuticals & Healthcare

The pharma and medical sector uses charters to ship time-critical, sensitive cargo like vaccines, clinical trial drugs, organ transplants, and medical equipment. Charters offer same-day or next-day delivery with end-to-end temperature control – crucial for maintaining drug efficacy. During the pandemic, carriers chartered flights to distribute COVID-19 vaccines and PPE across North America, illustrating the vital role of charters in healthcare logistics.

Beyond emergency response, air cargo charters are integral to the routine operations of the pharmaceutical supply chain. They enable tailored solutions for transporting temperature-sensitive goods under strict GDP (Good Distribution Practice) compliance, including the use of active containers, real-time tracking, and dedicated handling teams.

Charters are especially valuable when dealing with shipments to remote or underserved regions where commercial routes are limited. By providing direct, controlled, and reliable transport, air charters help ensure that life-saving treatments and medical innovations reach patients without delay – a capability that's increasingly essential as the industry shifts toward personalized medicine and global clinical trials.

Air Charter for Oil & Gas (Energy)

Oil, gas, and mining companies often operate in remote locations where urgent deliveries by air are the only option. Oil and gas air charters deliver heavy machinery, drilling equipment, and critical spare parts to offshore rigs or remote mining sites. For high-value energy projects, a chartered cargo plane can fly oversized components (like pipelines or turbines) directly to the jobsite, minimizing costly delays in high-stakes operations.

Air cargo charters also support emergency response and crew rotation in the oil and gas sector, where timing is critical and safety is paramount. When equipment fails or weather delays disrupt supply chains, chartered aircraft can rapidly transport engineers, technicians, or replacement parts to keep operations running smoothly.

The flexibility to mobilize on short notice and reach remote airstrips or offshore platforms makes charters an indispensable logistics solution. Additionally, tailored load planning and specialized aircraft enable the safe transport of hazardous materials and out-of-gauge cargo, ensuring compliance with industry regulations while maintaining operational continuity.

Aerospace & Aviation

The aerospace industry uses cargo charters to move aircraft parts and satellites that are too large or urgent for regular transport. Examples include jet engines, fuselage sections, or satellite components – often moved by giant freighters (like the Antonov An-124, which can carry up to 120,000 kg of cargo). When an airline faces an AOG (Aircraft on Ground) situation – needing a part to get a grounded plane back in service – chartering a jet for rapid delivery is a common solution.

Air cargo charters also support the fast-paced demands of aircraft manufacturing and testing programs, where delays can ripple across complex production schedules. Manufacturers and suppliers rely on charters to transport critical components between global assembly lines, often under tight timelines to meet contractual milestones.

For space missions, charters provide secure, time-definite transport of delicate satellite payloads or rocket parts to launch facilities, often requiring custom loading solutions and climate-controlled environments. With precision and security as top priorities, charters offer the aerospace industry the speed, flexibility, and reliability needed to maintain momentum in one of the world’s most technologically advanced sectors.

Technology & Electronics

Tech companies and electronics manufacturers use charters for high-value, time-sensitive shipments such as semiconductor equipment, data server hardware, or product launches. For instance, a shortage of critical components might prompt a charter flight from Asia to a U.S. factory to prevent a production line shutdown. Charters also support big product release logistics (moving large volumes of devices on tight schedules), and they were instrumental during recent chip supply chain disruptions.

Air charter freight offers enhanced security and handling for fragile, high-value electronics that require careful transportation and strict environmental controls. Whether moving prototypes, repair parts, or sensitive manufacturing tools, charters provide end-to-end oversight, minimizing risk of damage or theft during transit.

The ability to bypass congested hubs and fly direct to destinations enables tech firms to respond quickly to market demands, resolve supply chain bottlenecks, or meet tight production timelines. As innovation cycles accelerate and global tech infrastructure expands, the agility and reliability of air cargo charters have become essential to keeping the digital world connected and competitive.

Government & Military Air Charter

Governments and defense agencies utilize charters for secure, dedicated transport of sensitive cargo. This can include diplomatic mail, emergency relief supplies, or military hardware deployments. Charters offer confidentiality and control, often using either military aircraft or civilian freighters under contract. For example, the U.S. military charters commercial freighters to move equipment and aid (via the Civil Reserve Air Fleet program), and during disaster relief efforts (hurricanes, wildfires), chartered cargo planes deliver humanitarian aid swiftly to affected regions.

Air cargo charters also play a key role in rapid troop deployment, mission-critical logistics, and peacekeeping operations around the world. Their ability to access remote or hostile regions with flexible scheduling makes them indispensable for time-sensitive operations.

Governments often rely on charters to transport surveillance equipment, armored vehicles, or classified materials with enhanced security protocols and minimal risk of interception. In geopolitical crises or evacuation scenarios, charters can be mobilized within hours, providing a lifeline for citizens and personnel in volatile environments. With precision, discretion, and responsiveness, charter services form a strategic asset in global defense and diplomatic logistics.

Air Charter Terms

Glossary of Air Cargo Charter Terms

Understanding industry terminology is essential when working with air cargo charters. Below is a glossary of 12 major terms commonly used in the air charter business, each with a brief explanation:

ACMI (Aircraft, Crew, Maintenance, Insurance)

A type of wet-lease arrangement where one airline (lessor) provides an aircraft and covers crew, maintenance, and insurance for another operator (lessee). The lessee pays for fuel and other operational costs, usually on a per block-hour basis, and has operational control. ACMI leases (often lasting a few months) help airlines quickly get extra capacity without buying aircraft – for example, during peak seasons or when another plane is down for maintenance.

Block Hours (Block Time)

In aviation, “block time” refers to the elapsed time from an aircraft’s departure gate push-back to its arrival at the destination gate. It includes taxiing, flight time, and taxi-in. Block hours are a key unit for measuring aircraft utilization and charter cost: charter contracts often charge by the block hour, since it represents the total time the aircraft is committed to the client’s mission.

Payload

The term payload denotes the weight of cargo, passengers, and baggage that an aircraft carries – essentially the revenue-generating load (excluding the aircraft’s own weight and fuel). In cargo charters, payload is typically expressed in kilograms or tons of freight. Every aircraft has a maximum payload capacity it can safely carry. For example, a Boeing 747-8F has a payload capacity around 137,000 kg. Optimizing payload (without exceeding limits) is crucial for efficiency and profitability on charter flights.

Dangerous Goods (DG)

Also known as hazardous materials (Hazmat), these are substances that pose a risk to health, safety, property, or the environment during transport. Examples include explosives, flammable liquids, radioactive materials, and certain chemicals. Air cargo charters carrying dangerous goods must follow strict regulations (IATA Dangerous Goods Regulations) on packaging, labeling, and documentation. Some charter operators specialize in DG shipments – for instance, flying chemicals for the oil industry or batteries for electronics – with crews trained to handle them safely.

Freighter (All-Cargo Aircraft)

A freighter is an aircraft designed or converted to carry cargo only, rather than passengers. Freighters usually have reinforced floors, wide cargo doors, and no passenger amenities. They range from small turboprops up to jumbo jets. In the charter industry, freighters are the backbone since they can be booked entirely for cargo. Notable examples are the Boeing 747F, Boeing 777F, Boeing 767F, Airbus A330-200F, and specialized planes like the Antonov An-124. (By contrast, belly cargo refers to freight shipped in the holds of passenger flights.)

Belly Cargo

Cargo transported in the lower deck hold of a passenger aircraft – essentially utilizing the “belly” space under the passenger cabin. Airlines often carry freight on scheduled passenger flights this way. During COVID-19, loss of belly cargo capacity (due to fewer passenger flights) drove many shippers to charters. While belly cargo isn’t a charter flight itself, it’s the alternative that charters compete with. For shippers, belly freight can be cost-effective, but charters offer capacity when belly space is unavailable or when a shipment can’t wait for scheduled routes.

Charter Broker

A specialist or firm that arranges air charters on behalf of clients, acting as an intermediary between the customer and the aircraft operators. Charter brokers leverage industry knowledge to source the right size aircraft at the best price and handle logistics like permits and ground handling. They do not operate the aircraft themselves (unlike charter airlines), but coordinate everything from contract negotiation to flight following. Using a broker can be especially helpful for complex charter needs (multiple stops, special cargo, etc.) or for first-time charter customers who need guidance.

Dry Lease

An aircraft leasing arrangement where only the aircraft is provided, without crew, maintenance, or insurance (the lessee must arrange those separately). In a dry lease, the lessee operates the aircraft under its own AOC (Air Operator Certificate) and has full operational control. Dry leases are typically longer-term (years) and are essentially an aircraft rental. This contrasts with a wet lease (or ACMI lease) where the lessor also provides crew and other services. Cargo airlines might use dry leases to expand their fleet, whereas charters per se more often involve wet lease/ACMI or single-use arrangements.

Empty Leg

Also called a ferry flight or deadhead, an empty leg is a charter flight that flies without cargo (or passengers) on one of its segments. This often occurs after a one-way charter: the aircraft must return to base or reposition for another job with no payload on board. Empty legs are common in private jet charters, but also occur in cargo – e.g. a plane delivers freight and flies back empty. These empty repositioning flights are sometimes sold at a discount to other shippers (a way to recoup cost). For example, a charterer might get a deal on an empty leg if their shipment happens to align with an aircraft’s return route.

Oversized (Outsize) Cargo

Cargo that is too large or heavy to fit in standard aircraft containers or on scheduled flights, often requiring special charter arrangements. This includes things like industrial machinery, construction vehicles, large aerospace components, and other non-standard freight. Outsized cargo charters might employ aircraft with nose-loading or ramp-loading capability (e.g. Antonov An-124, Boeing 747F, or C-17). Handling oversized loads involves careful planning (routing to airports with sufficient runway and loading equipment) and sometimes custom crating or dismantling of the cargo. A notable example was the charter of an An-124 to transport a 35-ton industrial press that was far too large for regular cargo holds.

Partial Charter

A situation where a shipper charters only part of an aircraft’s capacity, sharing the plane with other cargo. In a partial charter, multiple shippers jointly rent an aircraft, or an airline sells cargo space on a charter to several customers. This is useful when one shipment can’t fill the whole aircraft but still requires charter speed – for example, two forwarders might split a 747 charter from Chicago to Europe, each using half the volume. Partial charters provide cost savings over a full charter, while still offering more control and capacity than scheduled flights. Many charter brokers facilitate “split charters” by combining compatible loads from different clients.