Lufthansa Cargo Q3 traffic revenue up 17%

Lufthansa Cargo reported a 3,700 percent increase in operating profit (adjusted EBIT) at €38 million for the third quarter of 2024 compared to €1 million in the same period last year in the traditionally seasonally weak third quarter for air freight.

The trend confirms the anticipated normalisation in the air freight market, says an official release. "Furthermore, Lufthansa Cargo is optimally positioned to benefit from strong e-commerce business with Asia, which has prompted Lufthansa Cargo to shift capacity from the transatlantic to the Asia/Pacific region."

Traffic revenue increased 17 percent to €731 million, revenue cargo tonne kilometres increased 11 percent to 2.1 billion while capacity was up five percent at 3.5 billion.

For the first nine months of 2024, traffic revenue was up three percent at €2.1 billion while EBIT was down 72 percent at €53 million. Revenue cargo tonne kilometres increased 13 percent to 6.2 billion while capacity was up eight percent at 10.1 billion.

"Lufthansa Cargo is continuing to expand its fleet; in August 2024, the 18th B777-F cargo aircraft was integrated into the fleet. In July 2024, Lufthansa Cargo added Shenzhen to its cargo network, which allows Lufthansa Cargo to support important supply chains to and from China and to meet the continued strong demand for e-commerce shipments."

Yields, however, fell in all of Lufthansa Cargo’s traffic regions in the reporting period and were down 8.8 percent overall on the previous year "when high demand as a result of global supply chain disruptions combined with limited supply had been a significant factor in the earnings trend, especially in the first quarter; in the third quarter of 2024, yields were 5.1 percent higher than in the previous year."

Sector-wise, Asia Pacific reported a nine percent increase in traffic revenue at €943 million on 21 percent increase in revenue cargo tonne kilometres (2.8 billion).

Lufthansa Group’s cargo business capacity for the first nine months was 11 percent higher and sales (revenue cargo tonne-kilometres) went up by 14 percent compared with the previous year. "Traffic revenue in the cargo business grew by four percent to €2.5 billion due to higher sales despite lower yields."

Group revenue up 5%
The Group increased its total revenue by five percent year-on-year to €10.7 billion (previous year: €10.3 billion), the strongest quarter in terms of revenue in the history of the company.

The Group generated an operating profit (adjusted EBIT) of €1.3 billion (previous year: €1.5 billion), resulting in an operating margin of 12.5 percent (previous year: 14.3 percent). Net profit fell to €1.1 billion (previous year: €1.2 billion).

"With all passenger airlines operating at a profit, Eurowings, Austrian Airlines and Brussels Airlines even generated record results in the third quarter," says Carsten Spohr, Chairman, Executive Board and CEO, Deutsche Lufthansa. "Lufthansa Technik and Lufthansa Cargo also remain on track. At the same time, delayed aircraft deliveries, punctuality issues at our hubs in Germany and regulatory disadvantages are impacting our core brand. Lufthansa Airlines has therefore launched the Turnaround programme to address these and structural internal challenges.

“Across the group, we are continuing to invest in the largest fleet modernisation in our history, in premium offers for our guests and in an even more international positioning. These three central pillars of our strategy will enable us to further expand our role as the leading airline group in Europe.”

Outlook
The Group expects to report a positive operating result in the fourth quarter. "Overall, the Lufthansa Group is therefore confirming its expectation of achieving an adjusted EBIT of €1.4 to 1.8 billion for the full year, , largely dependent on the earnings trend for Lufthansa Airlines as well as the traditionally important fourth quarter at Lufthansa Cargo."