This paper presents a mathematical modeling framework designed for air cargo operations of a combination airline, focusing on intercontinental passenger aircraft. This framework optimizes the palletization problem (assigning cargo to Unit Load Devices (ULDs)) and the weight and balance problem (positioning ULDs within the belly of the aircraft). Unlike the traditional approach of solving these problems in sequence, our framework employs a feedback loop between an integrated one-dimensional bin packing with weight and balance and a three-dimensional bin packing. This feedback loop iteratively refines the solution by backpropagating information when items do not fit, reducing the solution space and computation time. The palletization problem is addressed with a three-dimensional bin packing heuristic, while the integrated onedimensional bin packing and weight and balance problem is solved using a mixed integer linear programming formulation. The model employs a lexicographic optimization approach to prioritize maximizing the percent mean aerodynamic chord at zero fuel weight, leading to significant fuel reduction. Additionally, operational objectives aligned with our partner airline’s practices are optimized to reflect actual operations. Scenario analyses validate the model, demonstrating potential fuel savings across various intercontinental routes and aircraft types, with an average fuel saving of 0.53% and reaching up to 1.90%, yielding substantial economic
and environmental benefits.