“Cargolux Group’s Resilience Shines in Challenging Market: 2023 Financial Win”
PRESS RELEASE
Luxembourg, April 24, 2024 – Despite challenging market conditions, the Cargolux Group (Cargolux) achieved a positive net result for the 2023 financial year, demonstrating the company’s ability to adapt to changing market dynamics. Cargolux reported:
1. Revenues of $2,975 million.
2. Profit after tax of $286 million.
This financial performance has strengthened the group’s balance sheet, positioning the airline to withstand anticipated industry volatility.
Business Highlights:
In the first half of 2023, the industry experienced a downturn with lower demand levels and increased pressure on rates, exacerbated by a surplus of available belly capacity. Operational challenges persisted due to restrictions on Russian airspace and geopolitical tensions in the Middle East.
Despite these obstacles, the fourth quarter of 2023 saw a surge in demand for dedicated freighter capacity driven by e-commerce shipments. Additionally, Cargolux expanded its operations by acquiring 3 Air Tractor AT-802F Fire Bosses for its new venture, Aquarius Aerial Firefighting.
Financials:
Operational Key Performance Indicators for 2023:
1. Block Hours: 138,387 (-7.8%)
2. Cycles: 21,039 (-10.8%)
3. Aircraft utilization (block hours/day): 13:04 (-6.3%)
4. Load Factor (FTK/ATK): 65.3% (-3.9ppt)
Outlook for 2024:
Following the disruptions caused by the COVID-19 pandemic, the air cargo industry is expected to transition to a more stable environment. The return of belly-hold capacity, global economic uncertainties, and geopolitical tensions remain key factors influencing the air cargo market.
The industry will continue to face challenges related to sustainability, particularly in reducing CO2 emissions and addressing the associated costs. The unpredictable nature of future demand and cost implications, combined with growing global concerns, will shape the outlook for the aviation sector.
