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Cargolux Group achieved a positive net result in 2023 despite challenging market conditions, reflecting the company's agility in changing market conditions. Financial metrics for 2023 include revenue of $2,975 billion and net income of $286 million.
This financial result allows the group's balance sheet to be further strengthened to withstand the expected volatility in the industry.
Highlights of fiscal year 2023:
- In the first half of the year, the cyclical nature of the industry returned with sales levels well below pre-Covid times. There was significant pressure on freight rates due to lower demand levels, compounded by increasing available belly capacity.
- Restrictions on the use of Russian airspace continued to impact operations to and from North Asia with longer flight routes, increased fuel consumption and higher operating costs. Geopolitical tensions intensified in the Middle East with the outbreak of conflict between Israel and Hamas, creating challenges for global trade and further denting customer confidence. The disruption to shipping traffic in the Red Sea at the end of the year brought only a marginal increase in the air freight sector by shifting from sea to air.
- Demand for dedicated freight capacity saw a welcome increase in the fourth quarter of 2023 due to the volume of e-commerce shipments.
- Cargolux also acquired 3 Air Tractor AT-802F Fire Bosses for its new business unit, Aquarius Aerial Firefighting.
Outlook 2024:
After years of upheaval caused by the Covid-19 pandemic, the air cargo industry is moving towards a normalized pattern. The cyclical nature of the market, the return of large-scale belly capacity and the global economic downturn will undoubtedly impact air freight.
Ongoing geopolitical tensions worldwide make it difficult to predict future demand and cost impacts. Returning volatility as well as increasing global concerns about sustainability, particularly the reduction of carbon emissions and their costs, will continue to put pressure on our industry.
