Lufthansa Cargo holds its own in a volatile environment

image credit: Lufthansa Cargo

Lufthansa Cargo was able to achieve significantly higher average yields than before the start of the corona pandemic despite increased capacities in the market. Lufthansa Cargo generated an adjusted EBIT of 219 million euros (previous year: 1.6 billion euros).

After freight rates normalized following the end of the corona pandemic, revenue fell by 36 percent to 2.98 billion euros (previous year: 4.6 billion euros).

Overall, sales of 7.5 billion freight ton-kilometers last year were slightly higher than in the previous year 2022 (7.2 billion).

The average load factor fell by 1.9 percentage points year-on-year to 59.2%, while the available capacity increased by 7% to 12.6 billion available freight ton-kilometers.

Ashwin Bhat, CEO of Lufthansa Cargo explains: “Despite a volatile business environment, which was influenced by global tensions last year, Lufthansa Cargo was able to successfully maintain its position.

“We owe this above all to the trust of our customers, and also to our employees, who mastered the year with great commitment and determination.

“However, the development also shows that we must not slow down. We need to continuously work on improving our quality, our network and our service promise to remain attractive.

“Around 80 percent of our global freight traffic is handled in Frankfurt, one of the most important hubs in Europe.

“This also shows the importance of the hub for the growing e-commerce market. In order to continue to meet the needs of our customers in the future, we are also investing in the modernization of our Cargo Center at our FRA hub in 2024.”

The modernization project at the Frankfurt hub with a total investment sum of 500 million euros will enable higher handling speeds, smooth transport processes and an improvement in service quality thanks to state-of-the-art technologies in the infrastructure.

This is particularly important with regard to the coming years.

“Air freight is and will remain a growth market – stable supply chains remain of great importance, especially in times of global tensions and dynamic developments. High valued and urgently needed goods can only be transported worldwide quickly, reliably and safely by air,” explains Bhat.

Frank Bauer, CFO and Labor Director of Lufthansa Cargo, sets a clear course: “We are making ambitious investments in our future – for this we need a solid long-term earnings base.

“This also includes anticipating the development of our market at an early stage and making short-term adjustments to our network and services in order to meet our customers’ needs.”

Lufthansa Cargo expects demand to grow slightly in the current financial year 2024.