Cargolux records $286 million profit despite challenging conditions
Cargolux posts $2.975 billion in revenues for 2023.
Luxembourg-based all-cargo airline Cargolux reported revenue of $2.975 billion and net profit of $286 million for 2023 despite challenging market conditions. With more than 85 offices in over 50 countries and operating a global trucking network to more than 250 destinations, along with over 50 years of experience in the air cargo industry, Cargolux currently operates a fleet of 30 Boeing 747-8 freighters and Boeing 747-400 freighters.
“The first half of 2023 saw the cyclical nature of the industry return with levels well below pre-Covid times and significant pressure on rates due to lower demand levels compounded by increasing levels of available belly capacity,” says an official release.
Additionally, restrictions on Russian airspace impacted North Asia operations, increasing fuel burn and costs, the release added. “Geopolitical tensions amplified in the Middle East with the outbreak of the conflict between Israel and Hamas, creating challenges for global trade and further affecting customer confidence. The disruption of shipping in the Red Sea at the end of the year did not benefit air cargo significantly with only a marginal increase recorded in the shift from sea to air.”
The demand for dedicated freighter capacity surged in the fourth quarter of 2023 due to the volume of e-commerce shipments, the release added.
Cargolux expanded its portfolio by acquiring three Air Tractor AT-802F Fire Bosses for its new business unit, Aquarius Aerial Firefighting.
2024 outlook
Cargolux recognises the ongoing uncertainties from geopolitical tensions, economic downturns, and sustainability concerns. The cyclical nature of the air cargo market and increasing focus on environmental sustainability present challenges for the industry. “As a future-geared airline, Cargolux also has 10 efficient Boeing 777-8F on order to replace its ageing 747-400 aircraft,” states the official release.
