Source copyright: Lufthansa Cargo/Oliver Rösler
Lufthansa Cargo saw its revenues and profits increase last year thanks to additional freighter capacity and e-commerce volume growth.
The overall Lufthansa Logistics division, which includes Lufthansa Cargo, time:matters, Jettainer, HeyWorld and a 50% stake in AeroLogic, reported a 10% year-on-year increase in revenues in 2024 to €3.3bn, while earnings before interest and tax (ebit) improved by 18% to €252m.
In terms of operational performance for the year, revenue cargo tonne kms improved by 14% to 8.3bn, capacity was up 9% to 13.7bn available cargo tonne kms and the load factor improved by 2.7 percentage points to 61.9%.
The airline said that the revenue and volume improvement was down to the “development of the e-commerce business” in particular in the Asia Pacific region.
Meanwhile, additional capacity also helped boost volumes – during the year the carrier continued to ramp up its passenger network following the Covid pandemic while it also added its 18th Boeing 777 freighter to its fleet, which includes six operated by AeroLogic.
It also operates four Airbus A321 freighters on regional operations covering Europe and North Africa.
The division said it had achieved its improved revenue and profit performance despite “the challenging airfreight market environment and the negative impact of the strikes in the first quarter”.
“A turnaround materialised over the course of the 2024 financial year and Lufthansa Cargo performed very strongly in the fourth quarter.
“This positive trend was buoyed by a high level of e-commerce demand. Lufthansa Cargo responded to this by shifting capacities, in particular from North America to China.”
Other network developments at Lufthansa Cargo included adding flights from Brussels to Monterrey, meaning, that for the first time, it is not just flying intercontinental services from Germany.
Lufthansa Cargo also offered 29% more freighter capacity to Asia during the fourth quarter compared to the same period of the previous year to meet high demand.
“Moreover, [Lufthansa Cargo] has adjusted its network in line with global economic trends and strengthened it in particular in Asia,” the Lufthansa Group said in its annual report.
“In the summer, it added Shenzhen and Zhengzhou to its cargo network. This move allows the company to support important supply chains to and from China and, among other things, meet the continued strong demand for e-commerce shipments.”
Since October 2024 Lufthansa Cargo has also, for the first time, directly linked Asia with North America, flying a circular freight route from Frankfurt via Ho Chi Minh City to Los Angeles and then back to Frankfurt.
In a press release, Lufthansa Cargo said that its ‘bold moves’ management strategy had also contributed to its successful performance.
The strategy aims to establish Lufthansa Cargo as one of the top five cargo airlines worldwide in the next three years and improve quality, customer satisfaction and cost efficiency.
The press releases added that, in response to market opportunities, the business developed a “comprehensive e-commerce solution” in collaboration with its subsidiaries heyworld, CB Customs Broker, and local customs authorities.
Ashwin Bhat, chief executive of Lufthansa Cargo, said: “We were able to demonstrate two things last year: our speed of innovation focused on customer needs and our flexibility in quickly responding to market developments. Therefore, I am optimistic about 2025 – a year that will continue to be characterized by uncertainties and unpredictable events.”
Looking ahead to this year, Lufthansa Cargo also aims to focus more on industry-specific solutions for the automotive, healthcare and semiconductor sectors to unlock growth potential.
Strong demand is also anticipated for the e-commerce sector this year.
