United States
US 52869375 | Procurement

Domestic Air Cargo Transportation Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
This report focuses on flights that have both a point of origin and destination within the same nation or harmonized trade region. 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.

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What’s included in this market coverage

IBISWorld's research coverage on the Domestic Air Cargo Transportation Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the Domestic Air Cargo Transportation Services market in the United States includes Standard Delivery, Next-Day Delivery, Standard Cargo, Dangerous Cargo, Perishable Cargo and Medical and Critical Cargo. Standard coding in this coverage includes ISIC-512-Freight air transport, NACE-51.21-Freight Air Transport, NAICS-481110-Scheduled air transportation and UNSPSC-78101501-Domestic air cargo transport.

What common market terminology is included?

Common market terminology included in the Domestic Air Cargo Transportation Services procurement coverage includes Priority Shipments (Shipments or mail that take an average of one to two days for delivery.), Request/Reply (R/R) Bookings (Bookings made shortly before a plane's departure. They differ from contract bookings, which guarantee capacity well into the future.), Belly-Holds (In passenger planes, this refers to storing freight in the middle portion of the fuselage underneath the passengers.), Nonscheduled Airfreight Transportation (This form of shipping involves chartering a plane or a plane and crew to transport goods, rather than relying on the services of a carrier with scheduled departure and arrival times.) and Renetting (Rewrapping palletized cargo for safer transportation.).

What companies are included as top suppliers?

The top companies covered in the Domestic Air Cargo Transportation Services procurement report as suppliers are Air Transport Services Group Inc., Atlas Air Worldwide Holdings, Inc., National Air Cargo Inc., Southwest Airlines Co. and American Airlines Group Inc..

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the Domestic Air Cargo Transportation Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per pound, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the Domestic Air Cargo Transportation Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting Domestic Air Cargo Transportation Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on Domestic Air Cargo Transportation Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the Domestic Air Cargo Transportation Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for Domestic Air Cargo Transportation Services?

The 2026 benchmark market price for Domestic Air Cargo Transportation Services is $2.25 per pound. Prices have increased at a CAGR of 1.37 from 2023-26.

Who are the top vendors in the Domestic Air Cargo Transportation Services market?

The top vendors in the Domestic Air Cargo Transportation Services market include Air Transport Services Group Inc., Atlas Air Worldwide Holdings, Inc., National Air Cargo Inc., Southwest Airlines Co. and American Airlines Group Inc..

What industries supply the Domestic Air Cargo Transportation Services market?

The top industries supplying the Domestic Air Cargo Transportation Services market are Aircraft, Engine & Parts Manufacturing in the US, Iron & Steel Manufacturing in the US, Gasoline & Petroleum Wholesaling in the US and Gasoline & Petroleum Bulk Stations in the US.

What is the supply chain risk for Domestic Air Cargo Transportation Services?

High market share concentration restricts buyers’ negotiation leverage and sourcing flexibility. The domestic air cargo transportation market is dominated by UPS and FedEx, which jointly control over half of the market's revenue. Beyond these two market leaders, much of the rest of the market is made up of other large airlines or transportation companies, as the cost of purchasing and operating commercial aircraft is a significant barrier to entry. This high concentration limits buyers' ability to drive competition, diversify sources, or demand pricing concessions. Buyers should consider multiyear agreements to lock in rates and invest in robust supplier relationship management to mitigate potential service or price shocks.

What factors affect the price of Domestic Air Cargo Transportation Services?

Distance is a critical factor in determining the price of domestic air cargo transportation services, as longer distances typically incur higher fuel costs, increased operational expenses, and longer handling times. For example, shipping agricultural products from California to New York will generally be more expensive than shipping the same products within California due to the additional miles traveled, which can be quantified using the per-mile pricing model commonly adopted in the industry.

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