Boom in passenger plane to freighter conversions

Old passenger jets are getting a new lease of life in an industry devasted by the global pandemic.

As lockdowns and border closures have all but ended international tourism, there has been a rush to permanently convert older passenger jets into freighters.

Normally about half of the world's cargo is carried in the bellies of passenger planes, but the hit to global travel has left the world more reliant on dedicated cargo planes, and a boom in e-commerce is pushing up demand.

It has created a huge opportunity for passenger-to-freighter conversion companies. Israel Aerospace Industries is one such firm, and Yosef Melamed is its general manager.

"I see that Amazon is going to grow I see that Alibaba is going to grow," he said. "In the end of the day both of them are going to act accordingly with those freighters they need those freighters."

Freighter conversions have become even more attractive, as old planes have seen their value plunge. Some models down by as much as 47% since the start of the year.

Aviation analytics firm Cirium expects the number of Passenger to Freighter conversions globally to rise by 36% to 90 planes in 2021, and to 109 planes in 2022.

Firms are betting on air freight demand, which was weak before COVID-19, remaining strong for years to come.

But analysts have warned that shortages can quickly turn to overcapacity.

For now, the conversions are allowing for aviation maintenance, repair and overhaul groups to offset some of their business losses.