United Airlines Cargo confirmed last week it will impose a new market fee on freight shipments booked from 1 May 2026. The surcharge applies variable rates by region, with shipments from the Americas facing approximately USD 0.25 per kilogram in additional charges.
The fee arrives as jet fuel prices have nearly doubled since military action against Iran escalated on 28 February 2026. United joins a growing list of transport providers passing operational costs to customers, including ocean carriers and the US Postal Service, which announced an 8% surcharge from 3 May.
Why United Airlines Is Adding the Surcharge
Stephanie Robbe Kramer, United Cargo spokeswoman, explained the fee reflects multiple cost pressures. “United Cargo is experiencing rising costs imposed on us by suppliers, partners, and by broader market conditions,” she said. “It is not tied to a single factor, but rather a combination of multiple elements.”
The airline faces the steepest fuel price increases in recent memory. Jet fuel costs doubled in just over two months following the Iran conflict escalation. United also cited rising expenses across handling services, partner fees, and broader supply chain costs.
United plans to cut 5% of capacity for the remainder of 2026 to contain costs. The airline reported pre-tax earnings of $900 million in Q1 with operating revenue up 10.6%, but cargo specifically declined 1.6% year-over-year to $422 million from $429 million in Q1 2025.
United Cargo Performance Lags Competitors
United’s cargo revenue decline stands in sharp contrast to US competitors. American Airlines posted cargo operating revenue of $214 million, up 12.9%, with cargo ton miles rising 9% in the quarter. Delta saw cargo operating revenue climb 9% to $226 million.
The performance gap is particularly notable given that global air cargo markets grew approximately 6.5% in the first two months of 2026 compared to 2024. Spot-market shipping rates jumped 25% to 40% since 1 March, according to FreightWaves.
Despite the revenue decline, United transported over 322 million pounds of cargo in Q1, including nearly 9 million pounds of medical shipments and 257,000 pounds of military shipments. The airline maintained significant operational volume whilst facing margin pressure.
Global airfreight tonnage dropped 4% year-over-year in March according to WorldACD data, reflecting broader industry headwinds beyond United’s specific challenges.
How the Market Fee Works
The surcharge takes effect for air waybills issued on or after 1 May 2026. Rates vary by region and origin point, with no fixed end date announced. United advised customers to contact their sales representatives for applicable rates specific to their shipping lanes.
The fee structure differs from traditional fuel surcharges by incorporating multiple cost factors rather than fuel alone. United stated it will “evaluate conditions closely and communicate any adjustments to this fee as conditions evolve.”
For forwarders managing air cargo rates, this creates additional complexity in pricing. Tools that compare live rates across multiple carriers become essential for ensuring competitive quotes when surcharges vary by airline and region.
Industry-Wide Response to Iran War Costs
United’s surcharge reflects a broader industry pattern. International sea freight carriers implemented similar fees after the 28 February escalation. The US Postal Service announced its 8% parcel surcharge will begin 3 May, two days after United’s air cargo fee takes effect.
Amsterdam Schiphol airport announced a temporary discount exceeding 10% on airport charges to help airlines cope with fuel price increases. Lufthansa Group will cut 20,000 flights at European hubs over the next six months as part of cost management efforts.
The aviation industry faces sustained pressure from the Middle East conflict. Analysts at Xeneta warned that rising fuel prices pose a significant threat to air cargo demand, potentially dampening the volume growth seen in early 2026.
Cargo Solutions Network Perspective
The market surcharge highlights the importance of carrier diversification and rate transparency for freight forwarders. When one carrier implements regional surcharges whilst competitors post revenue growth, forwarders need tools to compare total landed costs quickly.
United’s underperformance relative to American and Delta suggests the surcharge may make its rates less competitive on certain lanes. Forwarders should evaluate alternative routing options and carrier combinations, particularly on Americas-origin shipments where the USD 0.25 per kilogram fee applies. Multi-carrier quoting becomes critical when surcharges vary by airline and geopolitical costs remain volatile.
Frequently Asked Questions
When does the United Airlines cargo surcharge start?
The market fee applies to air waybills issued on or after 1 May 2026. Any shipments booked before that date under existing rates should not incur the surcharge.
How much is the United Cargo market surcharge?
United confirmed approximately USD 0.25 per kilogram for shipments originating from the Americas. Rates vary by region, and customers must contact their sales representatives for specific pricing on other origin points.
Why did United’s cargo revenue decline whilst competitors grew?
United Cargo revenue fell 1.6% to $422 million in Q1 2026 whilst American Airlines grew 12.9% and Delta gained 9%. United cited rising supplier and partner costs but has not explained the performance gap relative to competitors facing similar fuel price increases.
Will the surcharge end when fuel prices stabilise?
United has not announced an end date for the market fee. The airline stated it will evaluate conditions and communicate adjustments as the situation evolves, suggesting the surcharge may remain in place beyond the immediate fuel crisis.
Are other airlines adding similar cargo surcharges?
United is the first major US passenger airline to announce a cargo-specific market fee tied to the Iran war. Sea freight carriers implemented similar surcharges after 28 February, and the US Postal Service announced an 8% surcharge from 3 May.
Plan for Rising Air Cargo Costs
Freight forwarders should build the United surcharge into pricing models immediately. With jet fuel prices doubled and no clear timeline for relief, these fees may persist for months.
Cargo Solutions Network provides instant access to rate comparisons across multiple carriers on key routes. Quote airport-to-airport and door-to-door options without subscription fees. When surcharges vary by carrier, speed to quote wins business.
