Photo: Cargolux
Freighter operator Cargolux saw revenues and profits improve last year, but is cautious in its outlook for the remainder of 2025.
The company saw revenues in 2024 increase by 12.9% year on year to $3.3bn, while profits for the year improved by 56.6% to $448m.
The company said that it had benefited from growing e-commerce demand out of Asia Pacific.
Meanwhile, the ongoing conflict in the Middle East and between Russia and Ukraine, and their consequences on global trade, impacted operational costs and efficiency as well as consumer confidence.
"The global demand for e-commerce shipments led to a significant capacity shift to Asia and contributed to the strong volumes witnessed throughout the year,” the carrier said in a press release.
"This market segment re-shaped global demand, especially out of Northeast Asia, disrupting traditional seasonal trends and making them more difficult to forecast.
"In parallel, the record demand experienced for charter flights, including for e-commerce, was also a major contributor to 2024’s results.
"These favourable conditions, coupled with Cargolux’s agility, extensive experience, and unique ability to seize market opportunities, are reflected in the strong financial results for 2024.”
Operational figures reflected financial performance. Tonnes sold improved by 12.7% to 1.1m tonnes, block hours improved by 10.7% and the load factor was up by 0.9 percentage points to 66.2%.
Outlook
However, looking ahead, the airline outlined expectations of a difficult trade environment.
Cargolux said the imposition of import tariffs by the US on its trading partners is expected to negatively affect demand for air cargo capacity and disrupt traditional trade lanes.
"The resulting geopolitical uncertainty coupled with the ongoing war in Ukraine and conflicts in the Middle East also impact operations as well as customer confidence," the airline said.
"The global economic landscape is presently highly volatile, and the outcome of these upheavals remains uncertain at this time. The situation is being closely monitored in order to make informed business decisions when required."
Cargolux also said the increasing focus on sustainability and the introduction of regulatory changes would also put pressure on the aviation sector.
"The measures effective in the European Union (EU) will impact the cost of operations and will also benefit non-EU carriers, who are not subject to such regulations in their home countries. Authorities and industry players must work together to find suitable and viable solutions to ensure a sustainable future for the industry."
The EU's RefuelEU requirement states that starting this year, fuel uplift from member state airports must contain at least 2% SAF. The percentage will increase gradually, reaching 6% by 2030 and 70% by 2050.
Cargolux added that during the year, its Luxcargo Handling subsidiary "smoothly took over Luxair’s cargo ground handling activities" at Luxembourg airport on 1 May.
Meanwhile, its Aquarius Aerial Firefighting, (AFF) business was deployed on its first mission in the Summer of 2024.
"With three aircraft based in the South of Spain, AFF provided aerial firefighting support for the Spanish government."
