Cargolux Reports $448 Million Profit in 2024 Amid Strong US E-Commerce Demand

On Wednesday 23 April 2025, Cargolux held a press conference at their premises in Sandweiler to present their 2024 results.

Tom Weisgerber, Chairman of Cargolux, described the 2024 results as "our best financial result ever", following the solid performance in 2023. He noted that Cargolux is now among the top ten employers in Luxembourg, highlighting the company's growing importance. While acknowledging that the start of 2025 had continued positively, Mr Weisgerber also stated that the outlook had become "a little bit more challenging", citing uncertainties such as the potential end of the de minimis exemption for e-commerce by the United States on Friday 2 May 2025. Nevertheless, he urged against panic and emphasised the company's strong fundamentals: "a solid balance sheet", experienced staff and a committed management team, noting that despite the global decline in trade volumes, Cargolux remains well-positioned.

Cargolux CEO Richard Forson reiterated this cautious optimism, noting that the company is entering a period of uncertainty. He cited ongoing geopolitical tensions, including the war in Ukraine and the conflict in the Middle East, as persistent challenges for the air cargo sector. Forson also pointed to the upcoming US policy change on de minimis exemptions as a source of possible disruption. He stressed the need for agility and flexibility in response to market shifts and reaffirmed that Cargolux's strong balance sheet would help it weather potential turbulence in the short to medium term.

In 2024, global air cargo demand increased by 12.2% compared to the previous year. Cargolux recorded a 12.7% rise in its own tonne-kilometres. Industry capacity shifted from transatlantic and South American routes to Asia, driven by a surge in cross-border e-commerce, particularly to the United States and the European Union. Despite persistent geopolitical tensions and ongoing global conflicts, demand remained strong throughout the year. Cargolux's charter division also achieved its highest production on record.

Cargolux recorded a net profit of $448 million after tax in 2024, which CEO Richard Forson described as the company's best financial result ever, excluding the COVID years of 2020 to 2022. He added that this performance contributed to "the strongest balance sheet that Cargolux has ever had in its history since its formation 55 years ago." The airline is currently marking its 51st year of operations.

In 2024, Cargolux transferred its cargo handling operations to its fully owned subsidiary PowerLabs, effective from 1 May. The company also began investing in the replacement of its POLAR IT systems and announced planned infrastructure improvements over the coming years.

Cargolux's new fire-fighting unit, Aquarius Era, was deployed operationally for the first time in summer 2024. Three aircraft operated in Spain on behalf of the Spanish government and participated in extinguishing several wildfires.

Throughout the year, the company also worked to meet new sustainability legislation entering into force in 2025. This included preparations for mandatory fuel blending quotas and expanded reporting obligations. Although some requirements were revised under the EU "Omnibus" regulation, Cargolux noted that compliance remains administratively and financially demanding.

Cargolux CFO Maxim Straus provided further insight into the 2024 performance. With a stable fleet of 30 aircraft, Cargolux increased block hours by 10.7% thanks to more intensive aircraft use and a 0.9 percentage point improvement in load factor. Volume growth reached 12.7% year-on-year, with significant demand from Northeast Asia to Europe (+38%) and strong exports from Hong Kong and China to the United States. Revenues rose by 11%, supported by higher volumes and improved yield (excluding fuel) of nearly 7%. Operating profit before interest and tax (EBIT) reached $466 million and the net profit of $448 million represented a 56% increase compared to 2023.

Shareholders' equity rose by $332 million in 2024, while liabilities decreased to $1,591 million from $1,773 million in 2023. The total balance sheet expanded slightly to $6,415 million. Cargolux continued to refinance maturing aircraft over 10–12-year terms to maintain liquidity and keep debt levels well below the $2 billion peak recorded during the fleet expansion of 2014–2015.

Cargolux's total workforce approached 4,000 in 2024, largely due to the integration of 1,260 staff from Luxair Cargo Handling (LCH). Of the 3,881 total employees, 3,174 are based in Luxembourg, with others located in the United States, Asia and Italy, where the company operates four aircraft under its Cargolux Italia division. Approximately 300 new jobs (excluding LCH) have been created across the group over the past four years.

IK