Northern Air Cargo (NAC), founded in 1956, is a cargo airline headquartered in Anchorage, Alaska, USA.

According to reports, NAC is gradually scaling back its long-haul operations using Boeing 767 freighters, as well as its services in Miami and Honolulu, in order to focus on more profitable routes within these two states and stabilize its “fragile” financial situation.

In June this year, NAC exited the Caribbean and Latin American markets. The company had operated converted 767-300 freighters in that region on behalf of logistics provider StratAir. Both companies are subsidiaries of Saltchuk Resources, a diversified freight transportation, logistics, and energy distribution group based in Seattle.

April Spurlock, a director at Saltchuk, stated that NAC will terminate all 767 flights after shutting down its daily Los Angeles–Honolulu service in October.

According to a notice filed with the Florida Department of Economic Opportunity, NAC laid off 30 employees in Miami. A pilot also revealed that over 40 pilots have been placed on furlough.

“The decision to exit the 767 program has indeed required us to restructure parts of our operation, including the difficult step of reducing the team that supports these aircraft. We’ve been working to support these employees through the transition period while remaining focused on our still-strong services and routes,” said Spurlock. She declined to disclose the exact number of employees affected by the layoffs.

She added that NAC is returning its fleet of four Boeing 767 freighters to NAS Aircraft Leasing Co., another Saltchuk subsidiary, which will decide what to do with the aircraft.

According to the Flightradar24 database, one of the 767s was delivered last week to the Roswell International Air Center in New Mexico, a major desert storage facility for decommissioned aircraft.

The trade publication Cargo Facts was the first to report NAC’s withdrawal from widebody freighter operations.

Meanwhile, global air cargo demand growth has slowed from double-digit levels last year to around 3% in the first half of this year. International cargo volumes for North American carriers have contracted significantly, as the sector is impacted by weakened consumer confidence and the lingering effects of tariff policies, which have prompted retailers and manufacturers to reconsider import strategies until costs stabilize.

However, NAC’s challenges are primarily due to local market conditions and intense competition. For the 12-month period ending in April this year, NAC’s cargo tonnage dropped by 24%, and revenue ton-miles (a key measure of pricing power) declined by 38% year-over-year. According to data filed with the Bureau of Transportation Statistics (BTS), the airline served 20 local freight markets—down by 7 from April 2024. During that same period, NAC recorded a $30 million loss. The company has not submitted additional financial reports to BTS since September due to staff turnover and training challenges in its finance department.

Spurlock explained that StratAir is a freight forwarder that had an internal agreement with NAC to move cargo from Miami to Caribbean islands and destinations such as Lima, Peru. StratAir will now focus on import and export services from its warehouses near Miami International Airport. It also provides ground handling services for cargo carriers at San Juan International Airport in Puerto Rico.

Several other all-cargo airlines also serve the Caribbean, Central America, and Latin America from Miami International Airport, including Global Crossing Airlines, 21Air, Amerijet, and IBC Airways.

NAC will continue to operate narrow-body freighters. It currently flies a Boeing 737-800 on behalf of DHL Express, serving Reno, Phoenix, and Los Angeles. Two Boeing 737-400s provide inter-island service in Hawaii under the Aloha Air Cargo brand. NAC also operates two 737-400s from Anchorage to various communities across Alaska.