Luxembourg, 24 April 2024 – The Cargolux Group (Cargolux) generated a positive net result for its 2023 financial year despite challenging market conditions, a reflection of the company’s agility in changing market conditions.
Cargolux boosted its 2023 results with demand for dedicated freighter capacity, despite lower demand and rates in 2023.
The Cargolux Group generated revenues of $2,975bn and profit after tax of $286m.
However, the company’s operational KPIs were all down on the previous year.
Source: Cargolux
Reflecting on its 2023 results the company said: “The first half of 2023 saw the cyclical nature of the industry return with levels well below pre-Covid times and significant pressure on rates due to lower demand levels compounded by increasing levels of available belly capacity.
“The restrictions on the use of Russian airspace continued to impact operations to and from North Asia with longer flight paths, increased fuel burn and higher operational costs. Geopolitical tensions amplified in the Middle East with the outbreak of the conflict between Israel and Hamas, creating challenges for global trade and further affecting customer confidence.
“The disruption of shipping in the Red Sea at the end of the year did not benefit air cargo significantly, with only a marginal increase recorded in the shift from sea to air.
“However, the demand for dedicated freighter capacity saw a welcome surge in demand in the fourth quarter of 2023 due to the volume of e-commerce shipments.”
Cargolux operates a fleet of 30 Boeing 747-8 freighters and Boeing 747-400 freighters. Cargolux also has 10 Boeing 777-8F in order to replace its ageing 747-400 aircraft.
In its outlook for the rest of this year, the company said that the industry would be impacted by economic challenges, the continued return of belly capacity, as well as increased geopolitical tensions that “make it difficult to predict future demand and cost implications”.
The company also noted that decarbonisation targets will also continue to put pressure on the industry.
