Lufthansa Cargo's logistics division lifted third-quarter earnings before interest and tax by 230% to €162m, with revenues up 26% to €1bn. Volumes rose 11% to 2,546m revenue cargo tonne kilometres and capacity grew 5% to 4,010m available RCTK, pushing the load factor to 63.5%. Temperature-controlled freight revenues climbed 33% on pharma and semiconductor demand, and added India flights supported volumes and yields. Costs rose 16% to €924m on higher fuel and charter expenses. The carrier also completed its acquisition of Germany-based handler LUG aircargo handling.
According to www.aircargonews.net, Lufthansa Cargo posted a sharp rise in third-quarter operating profit, with earnings before interest and tax at the parent logistics division climbing 230% to €162m as semiconductor demand and new India services lifted volumes and yields.
Logistics division revenue climbs 26% to €1bn
The logistics division, which houses Lufthansa Cargo alongside time:matters, Jettainer, HeyWorld and a 50% stake in AeroLogic, reported third-quarter revenues up 26% to €1bn. The division said broad-based regional growth supported the result.
Traffic expanded alongside the top line. Volumes rose 11% to 2,546m revenue cargo tonne kilometres, while capacity increased 5% to 4,010m available RCTK. The load factor gained three percentage points to 63.5%.
The company noted that the third quarter tends to be one of its weakest periods for financial performance, making the profit jump notable against its normal seasonal pattern. It credited continued cost discipline for supporting profitability alongside the volume and yield gains.
Pharma and semiconductor freight drive yields
Temperature-controlled freight revenues rose 33% year on year, a gain the company attributed to strong growth in pharmaceuticals and semiconductors. Additional flights to India supported both volumes and yields during the quarter, according to the results presentation.
Demand was led by continued strong business in the Asia/Pacific region in particular, as well as in the Americas, the carrier added. The freight business also gained from a reduction in bellyhold capacity in the Middle East tied to the ongoing conflict there.
“In the context of the significantly changed market environment due to the conflict in the Middle East and the corresponding reduction in competitors’ capacities in the region, Lufthansa Cargo’s freight business gained momentum in overall terms.” — Lufthansa Cargo
The company said the reduction in market capacity, combined with a strong rise in fuel costs, led to a significant increase in yields compared with previous quarters.
Costs rise 16% on fuel and charter expenses
Third-quarter costs also climbed, rising 16% year on year to €924m, driven by higher fuel and charter costs. The increase partially offset the revenue and yield gains that lifted operating profit to €162m.
Separately, Lufthansa Cargo this week completed its acquisition of Germany-based handler LUG aircargo handling, a move aimed at strengthening its infrastructure for future growth. The deal adds ground handling capacity to the carrier’s cargo network.
Source: Air Cargo News
Compiled from international media by the SCI.AI editorial team.
