Lufthansa Cargo’s Q2 revenue jumps 45% YoY

Lufthansa Cargo proved to be among the carrier’s most profitable divisions in Q2, posting an operating profit of 482 million euros ($493 million) for the quarter despite a decrease in volumes. The carrier's cargo segment's operating profit represents a 48% increase from its Q2 2021 operating profit of $331 million. WHY IT MATTERS: Lufthansa Cargo performed at record levels during the second quarter due to ongoing disruptions in ocean freight driving up demand for freight capacities, according to the carrier’s Q2 earnings report released Thursday. However, total market freight capacity is still down as a result of ongoing recovery from the pandemic, which has kept belly capacities on passenger aircraft lower than pre-pandemic levels. [caption id="attachment_97019" align="alignright" width="300"] Photo: Lufthansa Cargo[/caption] THE BIG PICTURE: Lufthansa Group, which also owns carriers Swiss Air, Australian Airlines, Brussels Airlines and Eurowings, posted an operating profit of $400 million and a net profit of $263.7 million. BY THE NUMBERS: Lufthansa Cargo performed well in Q2, with significantly higher revenue compared to the same time in 2021: Operating profit increased 48% from $331 million in Q2 2021 to $493 million in Q2 2022; Revenues increased 45% year over year to $1.32 billion; and Earnings before interest and tax (EBIT) increased 48% to $490 million. WHAT THEY’RE SAYING: The carrier’s free cash flow of almost $3 billion for the first half of the year was a sign of success, Chief Financial Officer Remco Steenbergen said during Thursday’s earnings call. “Also in the full year 2022, thanks to the expected return to positive results, strict working capital management and disciplined investment activities, we forecast a clearly positive adjusted free cash flow and thus a reduction in our net debt compared to the prior year," Steenbergen added. STATE OF PLAY: In addition to operational challenges posed by the pandemic recovery, lockdowns in China, the war in Ukraine and inflation kept rates high and market freight capacity and cargo volume low . Lufthansa has also contended with labor shortages caused by strikes from the carrier’s ground handlers. Roughly 1,023 Lufthansa-operated passenger flights to and from Frankfurt Airport (FRA) and Munich Airport (MUC) were canceled in July due to a strike . FLASHBACK: The carrier’s overall performance has improved dramatically compared with the $769 million loss it suffered in the same period in 2021. NOTEWORTHY: With passengers returning to the skies, operational costs for Lufthansa Group rose by 96%, but the carrier netted a profit as overall revenue increased 164% YoY in Q2. FUTURE LOOK: A boom in demand for airline tickets, along with an ongoing labor shortage, has led to Lufthansa making plans to hire around 5,000 new employees in the second half year of 2022, according to the earnings report. THE BOTTOM LINE: Despite operational challenges, Lufthansa Chief Executive Carsten Spohr praised the company’s return to profitability during the earnings call. "The Lufthansa Group is back in the black," Spohr said. "This is a strong result after a half-year that was challenging for our guests but also for our employees. Worldwide, the airline industry reached its operational limits. Nevertheless, we are optimistic about the future.”

Lufthansa Cargo’s Q2 revenue jumps 45% YoY

Cargo revenues reached $1.3B

Overheard at ACTS 2022: Stakeholders speak out on the latest tech initiatives

UPS sets sights on two more 747-8Fs

Related Posts

Emirates SkyCargo fiscal half-year revenue jumps 52%

Lufthansa Cargo Q3 operating profit triples to $182 million

LATAM Airlines Q3 cargo revenue jumps almost 20%

UPS sets sights on two more 747-8Fs

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password