After three consecutive years of record profits, it was back to earth with a bump for Lufthansa Cargo in the primary quarter of the yr as revenues, profits and volumes all declined.
The German airline’s logistics division, which incorporates Lufthansa Cargo, Jettainer, time:matters, HeyWorld and a 50% stake in AeroLogic, registered a 30% year-on-year decline in first quarter revenues to €823m and earnings before interest and tax declined 69% on last yr to €149m.
Meanwhile, volumes fell 3% to 1.7bn revenue cargo tonne kms and the cargo load factor was 7.7 percentage points down on last yr at 61.2% on the back of a 9% increase in cargo capability.
Source: Lufthansa Group
Lufthansa said the result wasn’t surprising given the market slowdown experienced in recent months.
“The operating performance within the Logistics business segment in the primary quarter of 2023 fell wanting the record level seen within the previous yr, as expected.
“In the course of the coronavirus pandemic, the reduction of freight capacities within the bellies of passenger aircraft along with the high level of demand attributable to the provision chain disruptions had resulted in record revenue.
“The continued recovery of passenger traffic also prompted an expansion of freight capability; as well as, demand declined attributable to the overall economic slowdown, resulting in a normalisation of worldwide freight rates.”
The airline group added that cargo yields remain around 60% up on pre-Covid levels.
Taking a look at regional performance, the logistics division’s Americas region saw first-quarter volumes decline by 11% against last yr, there was a 3% fall for Middle East/Africa, a rise of 5% for Asia and a rise of 4% for Europe.
