MIAMI – 2020 was a record year for Cargolux (CV) and the carrier can celebrate its 50th jubilee with a net profit after tax of US$769m and an EBIT (Earnings Before Income Tax) showing a margin of 31%. Not bad for a year that saw the majority of carriers fighting deep financial crises.
Cargolux was initially impacted by the Covid-19 generated crisis, as all airlines in general including cargo carriers, and the outlook for the year was not bright. The shutdown of the Chinese industry was followed by a severe downfall of cargo space availability, due to the global interruption of passenger flights, and resulted in an increased demand for pure freight transportation.
This situation brought about a chance for dedicated cargo airlines which saw a sudden increase in demand and CV was well-positioned to take full advantage of the situation with an unprecedented request for cargo space, required to transport urgently needed medical supplies.
Cargolux played an important role in delivering key supplies by taking over the void left by the interruption of passengers’ flights and the consequent decrease in cargo belly space. This was done notwithstanding the continuously changing health restrictions imposed worldwide with CV responding to the market demand.
Moreover, the emergency situation created by the pandemic has pointed out the importance of air cargo to maintain the worldwide chain of supply. CV took full advantage of its “flexible and agile processes” to respond positively to the demand by adapting its network, optimize services, and operate to meet global needs.
Operational KPIS (Key Performance Indicators):
|Load Factor (FTK/ATK)||68.7%||+3.0ppt|
Profit & Loss KPIs
|% of revenue||31.3%||5.1%|
Cargolux is actually holding fourth place in the IATA’s ranking of the first 25 top international cargo carriers. On December 31, 2020, CV’s fleet was composed of 30, of which 16 were Boeing 747-400 freighters (10 Boeing 747-400Fs and six Boeing 747-400ERFs) and 14 Boeing 747-8 freighters. This uniform fleet enables CV to respond to changing market conditions in a flexible and timely manner.
Featured image: Cargolux LX-VCC Boeing 747-8F with special livery celebrating the 50 years of the airline | Photo: Luca Flores/Airways