• American Airlines Cargo is navigating global volatility with agility, leveraging its vast passenger network for stability while demand shifts geographically amid new trade rules and geopolitical uncertainty.
• Digital innovation is reshaping operations, with AI-powered capacity forecasting, smart routing, and deeper API integrations enhancing speed, transparency, and customer experience across key hubs like Heathrow, Miami, and DFW.
• Sustainability remains central to strategy, from eliminating 275,000 pounds of plastic to investing in hydrogen-electric aircraft, reinforcing American’s commitment to responsible growth and long-term resilience.

Amid shifting trade policies, geopolitical disruptions, and evolving consumer habits, adaptability is no longer a competitive advantage. It’s a necessity. With this backdrop, the cargo division at American Airlines is leaning into innovation, operational stability, and network partnerships to meet demand with resilience and precision.

“The demand is there,” said Greg Schwendinger, President of American Airlines Cargo. “It’s just this year is not playing out at all the way we thought it would.” Originally buoyed by positive GDP projections and balanced global capacity forecasts, the industry’s optimism was tempered by a fresh wave of geopolitical volatility. Yet Schwendinger remains confident: “We’re still seeing strong demand. It’s just coming from different geographies than we thought.”

Trade turbulence, demand stability

One of the biggest disruptors this year has been the unpredictability of trade arrangements, particularly along the Trans-Pacific corridor. Still, the US consumer remains a key stabilising force .“As long as the consumer in the US continues to spend on discretionary goods, then demand will remain fairly strong,” Schwendinger noted. For American Airlines, whose cargo strengths lie in the transatlantic and Latin American markets, the exposure to recent volatility in Asia is relatively modest. Still, changes like the removal of de minimis exemptions for Chinese and Hong Kong e-commerce shipments have reverberated across the supply chain.

“When that exemption was removed, a lot of freighter capacity immediately vacated the Trans-Pacific market,” Schwendinger explained. “But we’ve seen general cargo demand come back, and since the arrangement reached between the US and China in May, a bit more e-commerce too. It’s been a fairly decent supply and demand balance.”

Leveraging passenger networks for cargo advantage

A key element of American Airlines Cargo’s stability lies in its ability to leverage the vast passenger network, particularly its bellyhold capacity. Unlike freighter operators that are heavily exposed to cargo-specific fluctuations, American’s routes are passenger-driven, giving the cargo unit more predictability and reach.

“Our network really aligns well with where there is cargo demand,” said Schwendinger. “Even in leisure destinations that aren’t traditional cargo hubs, we’ve found creative ways to route cargo using partner airlines and strategic connections.”

Partnerships and creative routing are crucial, especially when operating out of passenger-centric hubs. “We’ve used leisure-focused destinations as connecting hubs,” he added. “Say, from Asia or the Middle East into Europe with a partner, and then across the Atlantic on our metal into the US”

Ground operations and smart hubs

As demand intensifies, American Airlines has also been investing heavily in smarter ground operations. The recent upgrade at London Heathrow is a prime example. “We moved into a much larger facility with about 20 percent more space,” Schwendinger said. “That gives us twice the ULD storage capacity and better throughput. Heathrow is our largest international cargo station, so this investment was critical.”

Similar care has been taken at key hubs like Miami and Dallas-Fort Worth. “We’re fortunate because our US facilities are well-sized with ample room to grow,” he added. “We don’t have the space constraints some of our competitors face.”

Digital evolution for speed and transparency

On the digital front, American Airlines Cargo has accelerated its push into automation and AI to meet evolving customer needs. “We’re doing an awful lot in the digital space,” said Schwendinger. “That includes API integration with our customers’ systems, expanded services on AACargo.com, and partnerships with cargo.one, WebCargo, and CargoAI.”

Artificial intelligence is also playing a pivotal role. A new capacity optimisation tool helps the airline better forecast what customers will tender, reducing overbooking or underutilisation. “Sometimes we actually have a better sense of what’s coming than the customer does,” Schwendinger remarked.

AI is also being used to suggest more efficient routings and to provide real-time policy access to internal teams, streamlining operations and improving customer service. “It’s about creating a seamless customer experience and removing friction at every touchpoint.”

Sustainability with substance

America’s environmental strategy blends incremental gains with bold future bets. One recent initiative replaced 275,000 pounds of plastic with biodegradable alternatives which is equivalent to removing over 12 million plastic water bottles from circulation. “That’s something we’re really proud of,” said Schwendinger.

Larger-scale efforts include investment in hydrogen-electric aircraft technology and partnerships with sustainability-focused investment funds. “The challenge is, there’s just not enough global investment in these technologies,” Schwendinger said. “Governments and the private sector need to come to the table. We’re doing our part, but we can’t do it alone.”

Future outlook: Opportunity and risk

Looking ahead, Schwendinger sees digital connectivity as the biggest operational opportunity. “The next step is tighter digital links with our forwarder partners, such as more real-time data, better visibility, smarter planning. That’s where we’re focused.”

The greatest risk? Uncertainty. “It’s the unknown factors such as geopolitical disruptions, natural disasters, airspace closures. Those are the hardest to plan for, but they’re becoming more common.”

Still, Schwendinger is optimistic. “We’ve got a resilient model, a strong network, and a clear digital and sustainability strategy. That positions us well to support our customers and respond quickly when conditions change.”