• Europe’s air cargo sector is navigating heightened uncertainty due to geopolitical tensions, energy costs, and shifting trade flows, requiring carriers to balance short-term responsiveness with long-term strategic vision.
• Virgin Atlantic Cargo emphasises agility both on the ground and organisationally, maintaining a dedicated “cargo excellence” unit to focus on transformational priorities while operational teams respond flexibly to customer needs and market disruptions.
• Growth opportunities are concentrated in Asia, particularly India, where the airline has expanded services and formed partnerships to strengthen transshipment capabilities, while sustainability and digital transformation are central to future-proofing operations through next-generation fleets and automation in customer and warehouse processes.

From geopolitical upheaval to shifting supply chains, Europe finds itself at the crossroads of an increasingly unpredictable global cargo market. The continent has long been a bridge between East and West, but the pressures of recent years have forced carriers and shippers alike to rethink strategy. Routes once considered reliable are now being recalculated in the face of diversions, higher costs and sudden volatility.

The challenge is not simply one of geography. Europe’s economic recovery remains patchy, while energy prices and inflation continue to shape demand. At the same time, Asian markets, particularly India and South Korea, are growing rapidly, reshaping trade flows. The question for European players is how to remain competitive when rivals across the world are able to pivot with speed, invest in new infrastructure, or harness lower cost bases.

Nick Diesel, Managing Director of Virgin Atlantic Cargo, says the stakes are higher than ever: “We’re in a world of a lot of uncertainty, and that’s actually become the norm in the last couple of years. I think we’re really well practised in dealing with that uncertainty, but it means you can’t take anything for granted. You have to be both nimble in the short term and consistent in the long term.”

Agility in an unpredictable landscape 

Diesel points to Europe’s position as both a hub and a bottleneck in the global system. The closure of Russian airspace, for example, has forced many carriers to reroute Asian services, while conflict in the Red Sea region has disrupted flows through the Suez Canal. Yet he argues that adaptation has become second nature: “The reality is you have to do both – respond to the immediate and keep an eye on the longer-term vision. We set out our strategic ambition, and while there are curveballs along the way, we make sure each decision still pushes us broadly in the right direction.”

This balance, he insists, comes down to structure. His team runs a dedicated “cargo excellence” unit, insulated from daily firefighting, tasked with monitoring long-term transformation. “That function doesn’t get pulled into the day-to-day challenges that are just inevitable in this industry. It helps keep us honest on those transformational priorities,” Diesel explains.

At the same time, agility on the ground remains critical. During the pandemic, Virgin Atlantic’s cargo business, like many others, pivoted to maintain supply chains at a time when passenger networks had collapsed. Diesel says that mindset has endured. “We like to be as agile as possible and we like to say yes as much as possible to customers. If we’re approached with something new, even if it’s not something we do today, we’ll look at whether it can work. That problem-solving mentality is what sets us apart.”

India and beyond: Where Europe meets Asia

If Europe is wrestling with uncertainty, Asia is reshaping the playing field. India, in particular, has emerged as a focal point for growth. Diesel describes it as “a good bet” that has paid off:

“We’ve gone from a single flight up to five daily flights into India – two into Mumbai, two into Delhi, and one into Bengaluru. Earlier this year we made the decision to insource our local team, showing just how committed we are to that market.”

The draw, however, is not just traffic to and from the UK. Europe’s ability to serve as a transshipment hub into the United States gives it an edge. “The facility we have at Heathrow allows for really seamless operation, minimising the time between import and export. That makes a huge difference for shippers who want reliability and speed,” Diesel says.

Competition, though, is intense. Gulf carriers continue to channel Indian goods through their hubs, while Asian airlines are boosting direct services. To strengthen its position, Virgin Atlantic has signed a memorandum of understanding with Indian low-cost carrier Indigo, aimed at expanding cooperation on cargo. “It’s too early to say exactly what that will look like, but it’s exciting,” Diesel notes. “They’re a great partner on the passenger side, and we see opportunities to do more together in cargo.” In fact, we now have an interline agreement in place connecting India with the US via Manchester.

Elsewhere in Asia, the airline is preparing to launch a new service to Seoul Incheon, while its Shanghai route has been closed. Diesel says such decisions are driven by a long-term assessment of economic development. “It’s about taking that longer-term view – looking at where growth is expected, and where we can add real value. Cargo plays a much bigger role in those decisions than it used to, especially after the pandemic showed how critical it was.”

Sustainability and digital transformation

Beyond markets and routes, the industry faces existential questions. Chief among them is sustainability. European carriers are under mounting pressure to decarbonise, with regulatory mandates combining with shifting consumer expectations. Diesel is clear: “Compliance is non-negotiable, but beyond that we’re starting to see changes in consumer behaviour. Even if sustainability isn’t the top priority yet, it’s definitely a consideration in how products are bought and transported. That’s only going to grow.”

Virgin Atlantic plans to operate a 100 percent next-generation fleet by 2028, a move Diesel says will not only reduce emissions but also provide operational certainty. “Once that transformation is complete, we don’t face the same renewal pressures others might. That’s a real positive,” he explains.

Digitalisation is another frontier. Automation and artificial intelligence are reshaping how airlines handle bookings, customer queries and even warehouse operations. “The most important thing is to be easy to do business with,” Diesel argues. “We’ve started automating more transactional queries in our contact centre, so customers get quicker responses. But it’s not about adopting every solution – it’s about picking the right ones that actually improve the process.”