Lufthansa Cargo sees demand surge as Iran war disrupts rivals

The Iran war created unexpected opportunities for Deutsche Lufthansa AG’s cargo business after disruptions affecting Middle East rivals wiped out a chunk of available freight capacity, the unit’s chief executive officer said. The conflict removed about 18%-20% of capacity from the market, Lufthansa Cargo AG CEO Ashwin Bhat said, citing disruptions affecting Emirates, Qatar and Etihad airlines. [caption id="attachment_414506" align="aligncenter" width="2155"] (Courtesy/Lufthansa Cargo)[/caption] “That also brings opportunity,” he said in an interview. “I don’t want to grow based on the bad luck of people, but the reality is that it has happened.” Demand rose 10%-15% last week, with particularly strong growth in India and Southeast Asia as shippers sought alternatives, Bhat said. Lufthansa Cargo added four freighter flights to India, while volumes out of Southeast Asia jumped about 40%. “Air cargo thrives on volatility,” Bhat, 56, said. “Whenever there is disruption, people want reliability. Air cargo gives you reliability.” Though the war is pushing oil prices above $100 a barrel, Lufthansa Cargo likely won’t be affected, Bhat said. While the unit doesn’t hedge fuel costs, it’s able to pass higher expenses on to customers. Lufthansa Cargo generated a €324 million ($373 million) operating profit last year, or about 17% of the group total. Bhat expects the strong demand to continue, though he pointed to uncertainty around how production may be affected by potential fuel shortages linked to tensions around the Strait of Hormuz. Lufthansa Cargo operates 22 freighters. About half of its total capacity comes from the belly of passenger planes across the Lufthansa Group, including Austrian Airlines, Brussels Airlines and ITA Airways. The group added commercial flights to Asia and Africa for travelers seeking alternatives to the Middle East. Like the commercial airlines, the cargo unit has suspended flights to parts of the Gulf region amid airspace closures and isn’t accepting bookings for affected destinations to avoid congestion at its freight hubs. The carrier is seeing “huge” transportation demand for server racks as companies build data centers, Bhat said. E-commerce shipments driven by Temu and Shein are expected to remain strong, though upcoming European regulation creates uncertainty. Pharmaceutical shipments — among them the drugs tied to the obesity-treatment boom — are also supporting demand. Bhat said the company is “constantly looking” at ways to expand capabilities, particularly in digital services and ground operations. Fleet expansion has been slowed by Boeing Co. delivery delays, with seven 777-8 freighters now expected in 2030 instead of an earlier plan for 2027. More uncertainty is also coming from its own ranks, with two pilot walkouts already this year, including a two-day strike last week. Additional strikes may loom after the pilots at the group’s low-cost carrier Eurowings voted in favor of potential action amid negotiations over company pensions. “There is enough uncertainty happening in the Middle East,” Bhat said. “It doesn’t help the brand to have these industrial actions during a time when the customers want reliability.” Cargo Facts will present four invaluable events for airfreight professionals in 2026, the next of which is <a class="Hyperlink SCXW113043295 BCX0" style="color: #ff0000;" href="https://cargofactsevents.com/asia/?utm_campaign=22235567-CF%20Asia%202026&utm_source=Editorial&utm_medium=article%20event%20footer&utm_term=CF%20website&utm_content=Learn%20More&utm_source=Weekly+Update+-+Cargo+Facts&utm_campaign=fbe548904b-CF+Update_COPY_01&utm_medium=email&utm_term=0_621baa6827-fbe548904b-40083601&mc_cid=fbe548904b&mc_eid=adbe8bb0b4" target="_blank" rel="noreferrer noopener"> Cargo Facts Asia on March 23-25. To see the agendas and register for the events, visit CargoFactsEvents.com .

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