Lufthansa Cargo reported a resilient performance in 2023, achieving an adjusted EBIT of €219 million, demonstrating stability despite the challenging global environment. This result surpassed the pre-pandemic level of 2019. The airfreight market, after experiencing high freight rates from 2020 to 2022 due to pandemic-related low capacities, normalized in 2023. Lufthansa Cargo maintained higher average yields and achieved a revenue of €2.98 billion, a 36% decrease from the previous year. The company emphasised the importance of customer trust and employee commitment in navigating the volatile business landscape.
Despite a 1.9 percentage-point decline in the average load factor to 59.2%, Lufthansa Cargo’s sales of 7.5 billion freight tonne-kilometres slightly exceeded the 2022 figure. The available capacity increased by 7% to 12.6 billion available freight tonne-kilometres. The CEO, Ashwin Bhat, highlighted the need for continuous improvement in quality, network, and service to remain attractive to customers.
Looking ahead, Lufthansa Cargo plans important investments, including a €500 million modernisation project at its Frankfurt hub in 2024, aiming to enhance handling speeds and service quality with advanced technologies. The expansion of the B777F fleet and global network, along with the optimisation of the freighter fleet, is part of the company’s development plans. Lufthansa Cargo also focuses on sustainability initiatives, such as using sustainable aviation fuels and implementing AeroSHARK technology to improve the CO2 balance.
The company expects demand to grow slightly in 2024, with an adjusted EBIT anticipated to be at the previous year’s level, acknowledging the dynamic environment and uncertainties. Overall, Lufthansa Cargo remains committed to maintaining a solid long-term earnings base, making ambitious investments in its future, and adapting to market developments to meet customer needs.
