Final answer:
During the COVID-19 pandemic, air cargo faced constraints due to reduced passenger flights but saw a spike due to medical supply and e-commerce demands. Airlines adapted by converting planes for cargo and benefitted from deregulation despite concerns over mergers. The future may see continued industry adaptation and supply chain diversification.
Step-by-step explanation:
Analyzing the ups and downs of air cargo during the pandemic reveals significant fluctuations. The initial outbreak of COVID-19 led to a dramatic decrease in passenger flights, which constrained air cargo capacity since many goods are transported in the cargo holds of passenger aircraft. However, the demand for medical supplies and the surge in e-commerce resulted in a spike in air cargo, benefiting carriers that could pivot to cargo-only flights.
Some airlines saved themselves by rapidly converting passenger planes to freighters, either by installing cargo on seats or by removing seats entirely. Furthermore, dedicated air freight companies experienced less disruption due to already having the necessary infrastructure in place. Airlines also benefited from the Deregulation Act, which may have reduced airfares and led to more full flights but also raised questions about the potential for decreased competition due to recent mergers.
Looking to the future, the industry could experience a shift with modified planes, more direct cargo flights, and possibly a re-evaluation of the hub-and-spoke system to cater to the changing nature of global demand. The future may also see the effects of supply chain diversification efforts that came in response to the pandemic. The ability for airlines to adapt to these changes will be paramount.