Publicly held air cargo companies outshined their passenger-carrying peers in the 2008 Top-Performing Companies study, and they appear to be better prepared for a hazardous future of fuel highs and economic lows.

United Parcel Service (UPS) heads the cargo rankings over rival FedEx and growing freight operator Atlas Air Worldwide Holdings. UPS scored a remarkable 99 out of 100 in the financial health category, as it has in each of the past eight years. The company ended the year with a cash and accounts receivable balance of $10.4 billion.

FedEx concluded the year with a $5.5-billion cash stockpile. Its financial health score of 92 ranks it second just above Atlas at 88. The financial strengths of these companies lead Aviation Week's panel of experts to predict that UPS and Fed­Ex in particular will continue to make acquisitions in cargo, freight and related sectors.

Further consolidation is expected this year. DHL is negotiating with UPS to handle its lift needs, which would shift DHL express and cargo from AStar Air Cargo and ABX Air.

In general, operators are already feeling a revenue pinch from slowed economic activity as seen in reports from the first two quarters of this year. Unlike passenger carriers, freight companies have demonstrated an ability to adjust capacity more quickly to meet demand. In the recent past surcharges to compensate for fuel hikes have been applied, but managers may be testing the limits of price elasticity.

Despite economic lulls, express shipments are still a necessity, though airlift costs may cause some businesses to opt for surface transportation.