A year of highs and lows for charter brokers

If there is one area of air cargo that stood to benefit the most from this year’s tariff turmoil, it is possibly the charter market, given its ability to provide solutions for short-term surges in demand.

However, while there have been some tariff-related surges, the overall charter market has been subdued with plenty of ups and downs.

Air Charter Service (ACS) group cargo director Dan Morgan-Evans tells Air Cargo News that cargo charter demand levels at the company are ahead of last year, but adds that it has been an “odd” sort of year.

“The tariffs have influenced quite a few peaks and troughs,” he says. “There have been sudden surges in demand and higher prices and then suddenly the market goes a bit quieter again.”

He says the peak season has been busy but more manageable than in recent years when demand took off, fuelled by e-commerce.

Glenn Hogben, chief executive of The Air Charter Association (ACA), agrees that charter demand has “fluctuated significantly” but adds that overall 2025 has been an “average year”.

“Following the announcement of president Trump’s intended tariff increases in February and March, demand for airfreight increased rapidly as companies sought to move their goods before these tariffs came into force to avoid being subject to increased costs,” Hogben says.

“Nonetheless, once the initial surge in demand at the start of the year tailed off, there was a significant decrease in charter demand. The period from July to August is often a quiet period for cargo; although this year, demand was well below normal.”

Chapman Freeborn Holdings chair Eric Erbacher describes the past 12 months as a year of recalibration following the post-pandemic surge.

“Demand has largely stabilised with a modest rebound in volumes across key sectors such as e-commerce, aerospace and automotive,” he says.

However, he adds that market-wide revenues have come under pressure due to the resurgence of belly capacity in scheduled passenger services and a more cautious global economic climate.

He says that Chapman Freeborn has “remained resilient” by focusing on time-critical solutions, project cargo movements and high-value verticals.

“Our ability to rapidly mobilise capacity through our global network has enabled us to maintain strong client relationships, even amid heightened pricing pressures and increased competition,” Erbacher says.

Charter challenges

Asked what the biggest challenges facing the charter market are at present, Hogben says that economic uncertainty, cost pressures and high levels of competition are areas of concern.

“Additionally, regional tensions in key areas such as the Middle East generate further instability and uncertainty, with developments changing on an almost weekly basis,” he says.

“While there will always be ad hoc charter demand arising from ever-changing global events, greater stability and certainty are preferable for business.”

Eliska Hill, senior vice president of cargo at broker Air Partner, says that the limited supply of widebody aircraft and geopolitics have been the biggest challenges for the cargo market this year.

“In response, we’ve prioritised specialist charters and continued to evolve our time-critical strategy to meet shifting market needs.” 

“In response, we’ve prioritised specialist charters and continued to evolve our time-critical strategy to meet shifting market needs,” she says.

She adds: "Air Partner Cargo has experienced a robust trajectory of growth throughout 2025. We’ve expanded our customer portfolio, entered new territories and industries, and sharpened our focus on time-critical logistics—particularly within the aerospace sector, where demand has been notably strong."

Morgan-Evans adds that another development this year has been a fall in the price of chartering aircraft from the post-pandemic highs of the last five years.

He says that the lower rates have helped some sectors return to the charter market, having previously been priced out.

The fall in aircraft charter rates has partly been a result of the decline of the US e-commerce demand, which has freed up aircraft.

“[The lower aircraft rates] have given us opportunities in the market,” he says. “There are always opportunities in the charter market, you just have to be flexible and be able to pivot to capitalise on them when they come up.”

He explains further that when there is low availability of aircraft, it creates opportunities for brokers that are able to secure capacity, while when more aircraft are available, airlines are more flexible around pricing, which opens up a wider customer base.

The ACA’s Hogben agrees that there is “good availability of aircraft currently” as a result of the new aircraft and freighter conversions being delivered, as well as reduced demand on the transpacific due to the US ending the de minimis exemption in August.

“Previously, a lot of aircraft had been occupied by this trading route,” he says. “Subsequently, we are now seeing operators repositioning these aircraft into other parts of the world, freeing up availability and keeping prices stable.

“However, availability is also impacted by the types of aircraft, as some of our members have highlighted a lack of widebody capacity aircraft, which has been particularly prevalent in peak season when airlines prioritise their scheduled service contracts over charter flights.”

Erbacher adds that the market has been facing margin compression due to passenger networks being rebuilt, which has intensified competitive dynamics.

“Concurrently, economic uncertainty is prompting customers to delay commitments, complicating demand forecasting and capacity planning,” he says.

“Geopolitical volatility, from shifting trade policies to regional conflicts, continues to disrupt supply chains and trigger unpredictable demand surges.”

In response, charter operators need to be increasingly agile and have access to versatile cargo capacity capable of adapting to rapidly changing conditions, he says.

On fleet, Chapman Freeborn has access to the aircraft of sister company Magma Aviation, which this year added an additional Boeing 747-400F to its managed fleet. It also has narrowbody Airbus A321 and Boeing 737-800F aircraft.

“The market for used widebody aircraft remains constrained, with ageing units retiring and limited new deliveries expected in the near term,” Erbacher says. “Lease rates for widebody freighters remain elevated, driven by sustained demand and ongoing MRO bottlenecks.”

Investing in the future

While the year may have been one of volatility, brokers have been continuing to invest.

ACS, for example, has a strategy of expanding its presence with new offices, which Morgan-Evans says has helped protect the business from the peaks and troughs of the year.

“You get booms and busts in air cargo and the way to flatten that out is to be in as many markets as possible, whether that’s verticals or whether that’s geographically.” 

“You get booms and busts in air cargo and the way to flatten that out is to be in as many markets as possible, whether that’s verticals or whether that’s geographically,” he says.

Having more local offices also allows ACS to get closer to the customer and provide a more personalised service, he adds, something the company has always prided itself on.

Morgan-Evans adds that ACS has also been investing in staff training and digital capabilities and now has an IT team focussing on cargo.

Chapman Freeborn has also been growing its presence with new leadership roles and enhanced brokerage capabilities in Europe, while expanding into Canada, Mexico, and opening a new office in Zhengzhou, China.

Erbacher adds that the company has also been deepening collaboration with key clients and capacity providers to extend its reach and service offering; investing in talent and training to make ensure teams are equipped to manage increasingly complex and time-sensitive capacity requirements and investing in digital transformation.

The ACA has also been investing in its member services and now provides accreditation and several bespoke training courses which are “vital to ensuring the highest standards are upheld across the industry”.

“A key example is the Air Charter Broker Qualification which delivers a comprehensive course covering all the information an air charter broker needs,” Hogben says. “Since launching The Air Charter Broker Qualification in 2021, The ACA has trained over 250 delegates from more than 30 countries.”

Elsewhere, the ACA focuses on workforce development, advocacy, and networking events and forums.

In 2024, The ACA launched The ACA Internship, annually providing 15 interns aged 18-25 with a week-long industry training course, research project and a work placement. Looking ahead a new Air Charter Essentials course is being launched online and in-person.

Air Partner has been focussing on investing in its time-critical logistics strategy.

"This includes a 24/7 operations desk offering white-glove service and rapid response capabilities," says Hill. "We've also expanded our recruitment efforts through our Academy programme, which nurtures new talent — exemplified by Millicent Davies, a finalist for Young Airfreight Professional at the Air Cargo News Awards."

The cargo division is also leveraging Air Partner’s presence in Dubai to develop a dedicated cargo team to serve the Middle East market, Hill adds.