Procurement Market Intelligence Report
Domestic Air Cargo Transportation Services
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Domestic Air Cargo Transportation Services Global Overview
Definition
Summary
This report focuses on flights that have both a point of origin and destination within the 50 states and US territories. Buyers of the service are called shippers in this report; suppliers are cargo airlines and are also called carriers. The main buyers in this market are companies involved in agriculture, medical devices and electronics.
This Report Includes:
- Airfreight Transportation Within the US
- Airfreight Transportation Within US Territories
- Airfreight transportation Between the US & US Territories
Not in this Report:
- International Air Cargo Transportation
- Passenger Air Transportation
- Nonscheduled Air Transportation
Classification:
Global Domestic Air Cargo Transportation Services Procurement Trends
Discover the top international trends affecting procurement in the global Domestic Air Cargo Transportation Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global Domestic Air Cargo Transportation Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 185 |
| #2 China | 150 |
| #3 Europe | 80 |
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Geography Drilldown - US & Europe
Average Cost of Domestic Air Cargo Transportation Services
United States
2026 Market Pricing$0.90 to $XX.XX
per poundEurope
Average Price
Prices in the Domestic Air Cargo Transportation Services market range from $0.90 to $XX.XX, depending on Departure & Arrival Zone, Shipment Weight, Level of Priority and Type of Cargo. For example, lower prices are associated with Shipments within the contiguous US ($0.90 to $8.90 per pound), whereas higher prices are associated with Shipments between the contiguous US and Alaska, Hawaii or Puerto Rico ($4.70 to $10.00 per pound).
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Domestic Air Cargo Transportation Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Domestic Air Cargo Transportation Services market, prices in the US have grown 1.9% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +2.6%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Domestic Air Cargo Transportation Services
Total cost of ownership is High in the Domestic Air Cargo Transportation Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Restocking may raise the total cost of ownership unexpectedly.
Negotiated Before
Other Fees
Unforeseen
Restocking
Spoilage
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.0 in the United States. Buyer power is most positively impacted by Price Driver Volatility. It is most negatively impacted by Forecast Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Aircraft, Engine & Parts Manufacturers
- Gasoline & Petroleum Wholesalers
- Airports
2nd
Tier Suppliers
- Steel Manufacturers
- Gasoline & Petroleum Bulk Stations
Biggest Domestic Air Cargo Transportation Services Suppliers in the US by Revenue
The largest Domestic Air Cargo Transportation Services vendors by revenue in the US are Air Transport Services Group Inc., Southwest Airlines Co. and Atlas Air Worldwide Holdings, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| United Parcel Service, Inc. | International | ATLANTA, GA | >10,000 | 25+ | ||||
| FedEx Corporation | International | MEMPHIS, TN | >10,000 | 25+ | ||||
| Delta Air Lines, Inc. | Global | ATLANTA, GA | >10,000 | 5-10 | ||||
| United Airlines Holdings, Inc. | Global | CHICAGO, IL | >10,000 | < 5 | ||||
| American Airlines Group Inc. | Global | FORT WORTH, TX | >10,000 | < 5 | ||||
| Southwest Airlines Co. | Global | DALLAS | >10,000 | < 5 | ||||
| Atlas Air Worldwide Holdings, Inc. | Global | PURCHASE, NY | 1,001-10,000 | < 5 | ||||
| Air Transport Services Group Inc. | Local | WILMINGTON, OH | 1,001-10,000 | < 5 | ||||
| National Air Cargo Inc. | Global | Orlando, FL | 501-1,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the Domestic Air Cargo Transportation Services market is 3.6% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Factors such as growing profitability, ample government assistance, and strong brand name recognition are lending themselves to moderate average vendor financial risk.
The market for domestic air cargo transportation is highly concentrated with UPS and FedEx dominating the market, bringing in over half of the market's revenue combined. Delta and American Airlines come in third and fourth place, with most of the remaining carriers holding little market share and operating regionally.
Service continuity and prices vary with the production levels and pricing of key upstream suppliers, which operate with a mostly moderate degree of risk. While upstream suppliers of steel and oil pose a high risk to the market's supply chain, supply chain risk is moderate overall.
The United States is a net exporter of jet fuel due to its robust oil and gas sector, access to natural resources, and petroleum refining capabilities. This limits competition in the market, making buyers more susceptible to price fluctuations from providers.
Supplier Information
FedEx Corporation
FedEx Corporation is a public company operating internationally in the manufacturing, manufacturing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business card printing, banners, letter & parcel Subscribe to learn more
United Parcel Service, Inc.
United Parcel Service, Inc. is a public company operating internationally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include business card printing, mailing software, 3d printing & rapid prototyping services, letter & parcel delivery... Subscribe to learn more
Delta Air Lines, Inc.
Delta Air Lines, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel, domestic air travel and aircraft charter services. Founded in 1925, the company is currently Subscribe to learn more
Air Cargo Carriers, LLC
Air Cargo Carriers, LLC is a private company operating nationally. The company's offerings include domestic air cargo transportation services. Founded in 1986, the company is currently headquartered in Milwaukee, Wisconsin, United States of America with an estimated 175 employees. Subscribe to learn more
Air Transport Services Group Inc.
Air Transport Services Group Inc. is a public company operating locally in the other services (except public administration) sector. The company's offerings include conveyor systems maintenance, domestic air cargo transportation services and aircraft charter services. Founded in 1980, the company is currently... Subscribe to learn more
American Airlines Group Inc.
American Airlines Group Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel and domestic air travel. Founded in 2013, the company is currently headquartered in FORT... Subscribe to learn more
Atlas Air Worldwide Holdings, Inc.
Atlas Air Worldwide Holdings, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services. Founded in 1992, the company is currently headquartered in Purchase, New York, United States of America with an estimated 4056 employees. Subscribe to learn more
National Air Cargo Inc.
National Air Cargo Inc. is a private company operating globally. The company's offerings include domestic air cargo transportation services. Founded in 1991, the company is currently headquartered in Orlando, Florida, United States of America with an estimated 750 employees. Subscribe to learn more
Southwest Airlines Co.
Southwest Airlines Co. is a holding company for the passenger airline Southwest Airlines. Its operating subsidiary provides scheduled air transportation in the United States, the District of Columbia, the Commonwealth of Puerto Rico, and near-international markets, including Mexico, Jamaica, The Bahamas, Subscribe to learn more
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Procurement Management KPIs for the Domestic Air Cargo Transportation Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Defect Density and Employee Training Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Transit Time Commitment and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Defect Density |
|
Number of shipments Number of damaged shipments |
The defect density represents the share of shipments that are damaged during the transportation process. Frequent damages to buyers' goods can harm their profitability and their reputation. |
| Employee Training Rate |
|
Number of employees that undergo evaluation Number of employees that pass evaluation |
The employee training rate represents the share of employees a company is able to successfully train. Proper employee training is especially important for buyers that require the transport of delicate, perishable or hazardous materials. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Surcharges
How do you determine your surcharge rates? Do you have the ability to make them more transparent than those of your competitors?
How does your security surcharge go toward improving the security of my shipment?
Insurance
Will you negotiate a recovery rate that covers the average value per pound of my shipment (e.g. a contingent liability or increased value contract)?
Can I set the terms for what constitutes gross negligence?
Customer Service
What is the extent of my point-of-contact person's authority at your company?
Will they respond to my inquiries directly and can they make immediate decisions regarding my cargo?
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Domestic Air Cargo Transportation Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization, including the industry and domestic locations where they operate.
Buyers should include a brief explanation of why they will require domestic air cargo transportation services.
Statement Of Need
Buyers should stipulate the time period for which they wish to enter into a contract, including options to extend the period.
Buyers should describe the type or types of cargo they expect to ship, including any specifications for hazardous, temperature-sensitive or other specialized freight.
Project Budget
Buyers should specify the maximum per-unit budget for air cargo transportation services.
Buyers should request a detailed breakdown of prices that they can expect to pay continually and on a one-time basis (e.g. software fees) or an infrequent basis (e.g. renetting fees).
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- Supply chain and vendors
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