Lufthansa Cargo revenue drops 41% YoY in Q3

German carrier Lufthansa Group reported third-quarter revenue of 10.3 billion euros ($11 billion) during its earnings call today, an 8% year-over-year increase. Cargo revenue did not fare well, however, falling 41% YoY to $717 million. [caption id="attachment_57137524" align="alignright" width="300"] (Photo/Lufthansa Group)[/caption] THE BIG PICTURE: As with other major carriers, domestic and international travel during Q3 was strong, aiding a successful peak season and contributing to Lufthansa’s overall profit margin. “The Lufthansa Group developed positively in the first nine months of the 2023 financial year,” according to its earnings report. “The recovery in demand for air travel after the coronavirus pandemic continued, and so passenger airline capacity was further expanded: In the reporting period, it was 17% above the previous year’s level; compared with the pre-crisis level in 2019, this corresponded to 82%.” Lufthansa Group airlines include Eurowings, Swiss International Airlines, Austrian Airlines, Brussels Airlines and Lufthansa Cargo. The carrier was ranked No. 16 on Air Cargo Next ’s Freight 50 list of cargo carriers this year, dropping two spots from the previous year. BY THE NUMBERS: Lufthansa Group’s operating profit increased 31% YoY to $1.6 billion, the second-highest quarterly profit recorded, company executives said. Lufthansa Cargo additionally reported for Q3: Cargo load factor down 0.8 points YoY to 55%; Cargo tonne kilometers (CTK) up 7% YoY to 3.4 billion tonnes; and Revenue from cargo traffic CTK up 5% YoY to $2 billion. WHAT THEY’RE SAYING: Cargo volumes increased, as did capacity, causing a decline in revenue and an operating profit near zero amid a weak global market. This is in line with other major global carriers that saw cargo operations fall short despite a recovery in passenger travel. “The operating performance in the logistics business segment returned to normal in the reporting period compared with the record levels seen in the previous year,” Remco Steenbergen , Lufthansa Group’s chief financial officer, said during today’s earnings call. “Yields fell in all of Lufthansa Cargo’s traffic areas and were 41% down on the previous year, although they were 45.6% above the 2019 pre-crisis level,” he said. STATE OF PLAY: Lufthansa continues to invest in new technologies , aiding in its digital transformation with upgrades to its mobile app and passenger experience onboard, as well as its environmental impact . The carrier said it will use 2% sustainable aviation fuel (SAF) in all its aircraft by Jan. 1, 2025. “We take our responsibility for the environment seriously, relying on technology instead of ideology,” Steenbergen said during the earnings call. “More aircraft at the most effective level [makes] for more friendly aviation. Each new model is up to 30% less kerosene and correspondingly saves [carbon dioxide].” Lufthansa Cargo ed two more Boeing 777F cargo aircraft with AeroSHARK technology in Q3, according to the report. In October, its fourth B-777F made a return to scheduled service, with the company citing AeroSHARK technology as an “innovative surface film … modeled on shark skin … [that] reduces air resistance, achieving significant savings in fuel and emissions.” “By 2030, our airlines will take delivery of more than 200 new fuel-efficient aircraft, the most extensive fleet modernization in our history,” Steenbergen said. “We also continue to optimize our existing fleet. Sixteen aircraft of our fleet are already equipped with our shock developer Lufthansa Technik NPSF bionic film that optimizes the airflow and enables significant fuel savings. Currently, it only makes our aircraft 1% more efficient. Further developments could …save up to 3%.” FLASHBACK: Lufthansa continues efforts toward increasing interest in aviation through new staff hires . In 2022, the carrier hired 11,000 new employees and said it expected to double that number by the end of 2023, Air Cargo Nex t previously reported. One of every five employees by 2024 will be a new hire, Steenbergen said. FUTURE LOOK: Lufthansa remains positive that its operations are stabilizing after a tumultuous recovery year. “The Lufthansa Group assumes that the positive course of business in the first nine months of the 2023 financial year will continue through the rest of the year,” the report stated. “This expectation is based in particular on the ongoing strong demand, which in the reporting period continued to be reflected in the form of continued positive developments in new bookings in the passenger business.” MARKET OUTLOOK: Shares of Lufthansa Group (NASDAQ: LHA:DE) were up 7.1% from market open to $7 per market share at market close. Lufthansa Group has a market capitalization of $8.92 billion. Editor’s note: All amounts have been converted to U.S. dollars.

Lufthansa Cargo revenue drops 41% YoY in Q3

Carrier’s overall revenue climbed 8%

October air cargo demand was ‘sub-seasonal’

Jettainer to open lease&fly hub in Shanghai

Related Posts

Boeing completes National 777F order

EFW CEO Jordi Boto joins Cargo Facts Symposium 2026

Mister Air to be Romania’s first 757 freighter operator

Jettainer to open lease&fly hub in Shanghai

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password