Lufthansa Cargo has again upped sales in Q1, further solidifying its role as the Lufthansa Group’s cash cow. From 01JAN22 to 31MAR22, the freight unit achieved an adjusted EBIT of almost half a billion euros. This is another significant increase compared to the same period last year. The carrier, like the entire cargo industry, is benefiting from the continuing discrepancy between high demand for transport and limited available capacity.
The logistics unit’s EBIT rose by 57% in the first quarter, to 495 million euros, versus 315 million euros in 2021. The figure includes cargo results contributed by Austrian Airlines, Eurowings, Brussels Airlines, and leisure carrier, Discovery, whose lower deck capacities are marketed exclusively by Lufthansa Cargo.
Capacity remains scarce, prices high
“The good results of the first quarter enable us to work on important topics such as the modernization of our ground infrastructure, and on further digital solutions for our customers. We want to offer our customers an even better customer experience in the future. A big thank you to all Lufthansa Cargo colleagues worldwide for these outstanding achievements," Lufthansa Cargo CEO, Dorothea von Boxberg, comments on the record figures.
She estimates that air freight capacity will remain at a very tight level for the time being, negatively affected by the ongoing COVID-19 pandemic leading to lockdowns (China) or staff sick-leave at ground handlers or trucking companies. Additionally, the Russian war in Ukraine, which claims many innocent victims, continues to distort traditional supply chains.
Second A321 conversion coming
Despite the tragedy and political upheavals elsewhere, “We, at Lufthansa Cargo, continue to work at full speed to be able to offer our customers worldwide the capacity they so urgently need. We are pleased that we have been able to offer new same-day and ecommerce solutions within Europe and to selected medium-haul destinations since March, with the operational launch of our first A321 freighter,” Ms. von Boxberg points out.
A second, leased A321 P2F, which is currently being converted from passenger to freighter at ST Engineering’s Singapore facility, is scheduled to follow in the second half of this year. The aircraft can carry up to 28 tons per flight once transformed.
The positive results achieved in Q1, 2022, enable the carrier to push ahead on the modernization of its ground infrastructure and continue to finetune digital solutions in order to speed up the flow of goods and improve product quality.
IAG Cargo is also pleased with Q1
Across the North Sea, IAG Cargo reports a 23.4% increase in revenues for Q1, 2022, totaling 432 million euros. “The results are a reflection of how IAG Cargo’s growing network has supported international trade, as the global economy recovers from the pandemic,” the group states in a release (IATA: BA, IB, VY, EI). Sold tonnage was up 19%, year-on-year. Growth was particularly driven by high demand for key industrial goods and automotive components on transatlantic routes. A second major driver was ecommerce, with high volumes flown into North America.
Commenting on the company’s quarterly financial and operational results, Managing Director Dave Shepherd said: “IAG Cargo has had another busy quarter. The global economy is increasingly moving on from the confines of the COVID-19 pandemic. Trade and confidence are clearly increasing. At IAG Cargo, we are seeing trends that first emerged during the pandemic, continue to drive growth, with ecommerce as a stand-out example.”
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