Credit: Viktor Laszlo

Cargolux Group has published its financial results for 2022, another record year for the Luxembourg-based cargo airline.

Cargolux reported revenues of $5.1 billion for 2022, an increase of 14.7% compared to 2021.

The company attributed its strong financial performance to strong yields and high volumes during the first half of the year. A decline in demand in the second semester led to lower volumes and a virtual absence of peak season in 2022.

The market dynamic was significantly affected by the outbreak of the war in Ukraine. The closure of Russian airspace and Western sanctions on Russia impacted flight paths towards the Far East resulting in longer sectors being flown and increased operational costs. The conflict in Ukraine also affected supply chains which were already suffering from a lack of raw materials and products. The resulting uncertainty disrupted global commerce and affected the airline’s ability to operate optimally, noted the company.

Moreover, the COVID-19 pandemic continued to affect operations worldwide. As sanitary measures eased throughout the year, passenger capacity returned to the market softening demand for cargo space and bringing yields down. At the end of December 2022, the total fleet of 30 aircraft comprised sixteen Boeing 747-400 freighters (10 B747-400Fs and 6 B747-400ERFs) and fourteen Boeing 747-8 freighters.

Looking ahead, Cargolux recalled that geopolitical tensions and the war in Ukraine continue to affect global trade. As a key component of the logistics chain, air cargo is directly affected by these issues. The company noted that the situation was unlikely to change in 2023.

Cargolux warned that the return of belly-hold capacity and the emergence of new players in the industry, including multimodal companies, pose a risk of overcapacity in an already declining market. The company added that pressing questions about sustainability and the increased pressure on airlines to reduce emissions must also be factored in as we face a turning point in the industry. Cargolux assured that it would continue to invest in new technology and develop digitalisation.