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Geo-political uncertainty propels Lufthansa Cargo's Q2

Lufthansa's logistics division - whose main component is Lufthansa Cargo, posted an adjusted EBIT in Q2 of €116m, an increase of 58% on the same period last year while revenues were up 27% year on year (YoY) to just over €1bn. Commenting on the quarter at conference call in Frankfurt earlier today, attended by The Loadstar, group chairman and CEO, Carsten Spohr, said: "The second quarter operating environment for air cargo was anything but easy, the conflict in the Middle East affecting the reliability of global supply chain networks which had to be adjusted at short notice in an environment like this, one thing becomes clear once again. The more complex and unpredictable the global economy becomes, the more a growing cargo business, like Lufthansa Cargo, shows its worth." He continued: "In particular, the crisis in the Middle East triggered a surge in demand on routes to the Far East and for our new and now almost daily, trans-Pacific connection, as well as our new intra-Asian routes." He went on to highlight that "this commercial success was the result of the consistent execution of our strategy and our increasingly strong focus on high-margin products, semiconductors and more and more IP server equipment for the growing AI-driven investments in computers around the world and data centres". In a statement issued before the conference call, the Group noted that in the context of a significantly changed market environment, due to the conflict in the Middle East and the corresponding reduction in competitors' capacities in the region, Lufthansa Cargo's freight business had "gained momentum in overall terms". The reduction in the volume of capacity on the market and the strong rise in fuel costs led to a significant increase in yields compared to previous quarters. Demand was driven by continued strong business in the Asia/Pacific region in particular. This was reflected in an increase in cargo tonnage. India had also performed strongly. Higher fuel and charter costs in particular had a negative impact on expenses. Capacity, expressed as available cargo tonne kilometers (ATK), grew a modest 2% versus the previous year mainly driven by 6% bellyhold growth, particularly from Italian airline subsidiary, ITA Airways. Traffic, expressed as revenue cargo tonne kilometers (CTK) increased 3% YoY while the cargo load factor was stable at 62.9%. Mr Spohr also drew attention to the modernisation of Lufthansa Cargo's ground infrastructure. "At the end of June, we brought the first and most important phase of our new Frankfurt cargo centre into operation. This will make our handling operations even more reliable, more efficient, and more productive, and obviously will contribute to the premium positioning of Lufthansa Cargo." He also remarked on the Group's internationalisation strategy which was beneficial to Lufthansa Cargo with the integration of the marketing of ITA Airways' cargo capacity and closer co-operation with other passenger airlines in the Lufthansa portfolio.

GXO Logistics - big sell-off signals impatience, not a verdict on the business

Key takeaway: GXO beat estimates, held rather than raised guidance, and the stock still fell double digits, which reads less like a verdict on the quarter and more like a market unwilling to keep extending credit to a long-cycle business on faith. The company's own numbers make a stronger case than its stock price does: a CEO who has publicly admitted GXO's margins run well below where they belong, a resumed buyback funded by a balance sheet that just ...

Just a sigh of relief for Forward Air, hit by another large impairment

Forward Air (FWRD) rallied in after-hours trade last night, rising to $17.25 a share, up nearly +12% in the wake of a Q2 26 trading update released after US market close that didn't prompt joy - yet, at least, took the stock back to were it traded pre-Q1 26 update. And... not far off the liquidation value we estimated... well, over two years ago: $19.1. Ahead of the call with the pros, most of the trick in that respect was done ...