16 Feb 2026

Freighter Conversions in 2026: Still a Play, Just More Selective

Cargo still looks attractive on paper and in many lanes it genuinely is. But the conversion market in 2026 is not a broad rising tide where every airframe floats. Economics are being tested harder by conversion slot availability, feedstock pricing, and the simple reality that downtime is not free when utilisation is the whole game. Here’s what has changed: the story is no longer enough. Converted freighters remain a practical tool when newbuild availability is constrained and networks keep shifting, but the market has become far more selective because the wrong conversion can trap capital in an aircraft that struggles to earn consistently through a lease cycle.

That is why the best deals start with the right feedstock and a realistic route plan. If the aircraft does not match the network, or the conversion timeline does not match the commercial window, the numbers stop working quickly.

 

What is a passenger-to-freighter conversion in 2026?

A passenger-to-freighter conversion is the process of modifying a passenger aircraft into a dedicated cargo aircraft through a regulator-approved modification pathway. Passenger-to-freighter is often shortened to Passenger-to-Freighter (P2F) and the approval itself is typically delivered via a Supplemental Type Certificate (STC), meaning an approved major change to the aircraft’s type design.

Because this is a structural and systems-heavy modification, it is not just about adding a cargo door. It changes how the aircraft is loaded, operated, maintained, and insured, which is why planning and documentation matter as much as the kit.

The conversion scope typically includes:

• Structural reinforcement (main deck floor, frames, door surround)
• Cargo loading system installation (rollers, locks, guides)
• Systems changes (smoke detection, fire protection, wiring changes)
• Cabin removal and weight re-optimisation
• Flight manual and limitations updates tied to the Supplemental Type Certificate

If P2F is treated like a quick flip, the cost often arrives later through downtime surprises and lease friction. When it is treated like a programme with milestones, entry into service is cleaner and the asset is easier to place and finance.

 

Why are freighter conversion economics more selective now?

They are more selective because the spread between total conversion cost and revenue potential is under pressure. Feedstock is not always cheap, conversion slots can be scarce, and cargo yields are not a straight line. In 2026, the winners are not necessarily the aircraft with the best headline payload range, but the ones that can be converted on time, placed quickly, and utilised consistently without bleeding downtime. The underwriting shift is practical. It has moved from “cargo is growing” to “will this specific aircraft earn under this specific route plan and lease structure?”

The pressure points show up in a handful of areas:

• Feedstock price: what gets paid for the passenger aircraft being converted
• Conversion cost: kit, labour, engineering, and scope escalation risk
• Slot timing: when the aircraft can actually enter the conversion line
• Downtime cost: lost utilisation plus bridging costs while waiting
• Residual risk: value exposure if rates soften or the route plan changes
• Placement risk: speed of leasing and the terms the market will accept

Advantages of being selective in 2026

The benefits are not abstract. They show up directly in cashflow and placement outcomes:

• Fewer assets stuck in long downtime windows with no revenue
• Better alignment between conversion timing and real market demand
• Stronger residual protection because the aircraft is right-sized to the network

Disadvantages of getting it wrong

When selectivity fails, the penalties are usually visible within months:

• Paying peak feedstock pricing and then waiting too long for a slot
• Entering service late, after the commercial window has shifted
• Carrying widebody-sized residual risk on narrowbody yield economics

If the economics feel tight on day one, they usually get tighter by month six. That is why selectivity is not caution. It is discipline.

 

Which aircraft types are winning in narrowbody conversions?

Narrowbody conversions are winning where the network is dense, regional, and frequency-driven. The aircraft can cycle quickly and keep utilisation high without needing long-haul yields to justify the capital. That is why narrowbody P2F tends to perform best when the route plan is built on repeatable rotations rather than occasional peak demand. The narrowbody winners are usually chosen for practicality. That practicality shows up in the aircraft’s loading compatibility, its ability to operate into secondary airports, and the depth of the maintenance and support ecosystem behind the type.

The narrowbody conversion story typically clusters around:

• Boeing 737-800 conversion family, including Boeing Converted Freighter (BCF) variants
• Airbus A321 Passenger-to-Freighter programmes, where lanes support the gauge and feedstock is available
• Combi configurations (combined passenger and cargo) in niche use cases where the STC and operational model make sense

Narrowbody winners are rarely about glamour. They are usually about lane economics. If the network cannot support consistent flying, the aircraft becomes an expensive parked solution.

 

When do widebody conversions make commercial sense?

Widebody conversions make sense when lanes genuinely need the gauge and can support the cost of capital, downtime profile, and operational complexity. In other words, widebody conversion is typically a targeted play, not a blanket strategy. The asset can perform extremely well when the route plan is honest, but it becomes a residual risk story quickly when demand is marginal. The widebody decision usually starts with the network, not the aircraft. It needs density, yield resilience, and an operator that can keep the aircraft working without gaps.

The widebody case tends to work best in situations such as:

• High-density trunk routes where payload per rotation matters more than frequency
• Hub-to-hub networks with stable volumes and predictable seasonality
• Scenarios where newbuild availability or pricing does not work for the operator
• Programmes where conversion maturity reduces technical surprise risk
• Maintenance and support plans that do not turn downtime into a recurring tax

Widebody conversions can be excellent assets when the route plan is built on durable utilisation. If the lane is borderline, the same aircraft can become a capital sink.

 

How do conversion slots and downtime change the business case?

Slots and downtime change the business case because they hit the only metric cargo truly cares about: time in revenue service. A “cheap” feedstock aircraft becomes expensive if it sits idle waiting for a line. And once the aircraft enters conversion, every week matters because fixed costs do not stop while utilisation does. That is why conversion planning has to treat time as a cost line, not a scheduling detail.

The slot and downtime levers that decide whether the case holds are usually:

• Slot strategy: secured slot versus hoped-for slot
• Pre-conversion work scope: clarity upfront to avoid extensions mid-line
• Bridging plan: what happens between acquisition and slot entry
• Post-modification testing and delivery planning: avoiding “finished but not usable”
• Spares and support readiness: reducing early operational disruptions

Advantages of disciplined slot and downtime planning

Done properly, it tends to show up as faster commercialisation:

• Faster entry into service and quicker lease commencement
• Less capital tied up in non-revenue months
• Fewer negotiations driven by missed delivery milestones

Disadvantages of ignoring it

Delays rarely stay contained. They compound:

• A time slip becomes a lease slip, then a placement slip
• Escalation risk rises as scope expands under pressure
• Buyers price in uncertainty, even if the end product is fine

A conversion deal that ignores downtime is usually not a bargain. It is just an underwritten delay.

 

What does the right feedstock mean for conversion decisions?

Feedstock is the passenger aircraft planned for conversion. Right feedstock means an aircraft whose age, utilisation history, maintenance status, configuration, and records make it a predictable conversion candidate with durable post-conversion value. In 2026, this matters more because feedstock pricing can stay high when passenger fleets are held longer, and availability is not always as deep as the cargo narrative suggests. The logic is simple: feedstock selection is asset triage. Hidden costs destroy conversion economics faster than most models admit.

Here is what the feedstock check typically looks like in a clean, decision-ready view:
 

After that checklist, the commercial sanity checks are still necessary. That shows up in a few straightforward filters:

• Clear maintenance planning, not “it will be assessed after teardown”
• Consistent records and traceability, because grey areas slow placements
• Realistic acquisition price relative to slot timing and conversion cost
• No wishful thinking on future value if the route plan is marginal

Right feedstock is where the best cargo math begins. Overpaying for a problematic aircraft forces the conversion to be perfect just to break even.

 

How are leases being structured around cargo utilisation and risk in 2026?

Lease structures are evolving because cargo assets live and die by utilisation, and the risk profile is not the same as passenger leasing. In 2026, it is common to see terms designed to reduce downside exposure when conditions shift and to align rent and obligations with how the aircraft is actually used. That includes utilisation-aware mechanisms, disciplined maintenance reserves, and delivery and redelivery conditions that reflect conversion realities. The structure is increasingly part of underwriting, not something bolted on after technical work is complete.

A practical view of the levers and what they protect looks like this:
 

Once those levers are set, the practical choices become easier to explain:

• Short-to-mid length structures where volatility is higher
• Clear return conditions that reflect cargo operating realities
• Practical remedies for downtime events that do not destroy the relationship

The strongest leases do not try to “win” on paper. They try to keep the aircraft earning while keeping the residual defensible if the market changes.

 

Conclusion: Are freighter conversions being priced as a story, or as maths?

Freighter conversions in 2026 are still a play, but they are a selective one. Economics are tighter, slots are a real constraint, and feedstock pricing can punish optimistic assumptions. The best outcomes start with the right feedstock, a conversion timeline that is genuinely achievable, and a route plan built on repeatable utilisation rather than headlines. Cargo will always have a story, but value is protected by the cargo maths, so are freighter conversions being chased for the cargo story or the cargo maths?

 

FAQs

Q. What does Passenger-to-Freighter (P2F) actually include?
A. Passenger-to-Freighter includes structural work, systems updates, cargo loading systems, and regulator-approved documentation under a Supplemental Type Certificate, not just adding a cargo door.

Q. Why do conversion slots matter so much in 2026?
A. Slot timing drives entry into service, and each month of delay adds non-revenue cost that can weaken lease economics and slow placements.

Q. Is narrowbody conversion demand still strong?
A. Yes. It remains strong in regional networks where lane density and frequency support consistent utilisation, particularly for widely supported narrowbody conversion families.

Q. What is the biggest risk in widebody conversion deals?
A. Residual and placement risk if the route plan cannot support the gauge consistently, because the capital and downtime profile is harder to absorb.

Q. What makes feedstock wrong for a conversion?
A. Poor records, unclear maintenance outlook, unsuitable configuration, or an acquisition price that only works if everything goes perfectly after conversion.