Cargolux’s record earnings marred by labor dispute

Cargolux , Europe’s largest all-cargo airline, today posted its best-ever a n nual financial results for 2022 , but this performance may be overshadowed by a long-running labor dispute over pay and working conditions that could lead to industrial action, labor union sources warned. [caption id="attachment_57135668" align="alignleft" width="300"] (Photo/Cargolux)[/caption] The Luxembourg-based carrier, which operates a fleet of 30 Boeing 747-400 and 747-8 purpose-built freighters, posted an after-tax profit of $1.6 billion, an increase of 21.9% compared to 2021. Revenue was up 14.7% at $5.1 billion. The airline said the strong financial results allowed it to further strengthen its balance sheet and remain resilient to weather the volatility it expects. Strong yields and high volumes during the first half of 2022 contributed to the company’s record performance. However, a decline in demand in the second half led to lower volumes and the virtual absence of a peak season. More difficult market conditions have continued into 2023. Cargolux noted that the return of bellyhold capacity and the emergence of new players in the industry, including multimodal companies, pose a risk of overcapacity in an already declining market. “The pressing questions about sustainability and the increased pressure on airlines to reduce emissions must also be factored in as we face a turning point in the industry ,” the company said in its earnings release . “ Cargolux will continue to invest in new technology and develop digitalization to drive the supply chain change and become a leader in sustainable operations . ” Unions demand work be recognized, rewarded Meanwhile, Luxembourg’s LCGB labor union, in a statement released today, highlighted Cargolux’s increasing profitability — record net profits of $768.7 million in 2020, $1.3 billion in 2021 and $1.6 billion last year — and referred to the impasse in negotiations for a new collective bargaining agreement for more than 1,800 employees . The previous agreement expired at the end of 2022, with negotiations going on for the past 10 months. The union said the airline’s management “categorically refuses any wage improvement, any sustainable improvement of the working conditions as well as any adequate job security for all employees.” The LCGB and another union have demanded that the work put in by staff in recent years, particularly during the pandemic, be recognized and rewarded. The trade groups took their case to Luxembourg’s business arbitration and conciliation service, which recognized the legitimacy of the negotiations. However, Cargolux has contested that ruling and appealed to an administrative court. “During the last three years, marked by the pandemic, the [airline’s] employees have made great efforts and demonstrated unwavering commitment, enabling Cargolux to meet the various challenges and achieve record profits for three consecutive years,” LCGB General Secretary Paul de Araujo said. “Instead of rightfully rewarding the staff for their exemplary work, Cargolux management continues to display an attitude of contempt towards staff.” De Araujo told Air Cargo Next: “Cargolux’s management has so far shown no willingness to engage in real and serious negotiations. As things stand, industrial action is inevitable.” Cargolux did not immediately make anyone available to comment to Air Cargo Next . Cargolux finalized the purchase of 10 of Boeing’s next-generation 777-8Fs in October, along with an option for six more airframes. It expects to take delivery beginning in 2027.

Cargolux’s record earnings marred by labor dispute

Europe’s largest all-cargo airline posts $1.6B profit

AerSale to deliver first 757-200F to FarCargo

Industry ‘falling behind’ on lithium battery detection, AfA’s Fried says

Related Posts

Cargojet expands fleet during record-breaking third quarter

Malaysia Air calls for level playing field on AirAsia Aid

Singapore Air returns to profit on travel, cargo demand

Industry ‘falling behind’ on lithium battery detection, AfA’s Fried says

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password