India Freight Forwarding Services

Lufthansa Cargo sees profits and revenues soar in Q2

Lufthansa Cargo saw revenues and operating profits rapidly increase in the second quarter of the year as a result of rising rates caused by the Middle East conflict. Lufthansa's logistics division, which includes Lufthansa Cargo, time:matters, Jettainer, HeyWorld and a 50% stake in AeroLogic, saw second quarter revenues increase by 27% year on year to €1bn, while earnings before interest and tax were up 58% to €116m. This increase in revenues and operating profits comes despite a smaller year-on-year increase of 3% in cargo traffic to 2.4bn revenue cargo tonne kms (RCTK). Meanwhile, capacity was up 2% on last year to 3.7bn available RCTK and the cargo load factor improved by 0.4 percentage points to 62.9%. The fact that revenues and profits increased faster than demand levels comes as the airline benefited from reduced capacity due to the conflict in the Middle East. Air France KLM Cargo also reported a strong increase in revenues during the quarter, although IAG Cargo registered declines as it does not operate freighters and was not able to benefit from the situation in the Middle East, instead being affected by a loss of belly capacity. "In the context of the 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 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, Lufthansa said. Capacity increases were mainly due to increased belly capacities, including the marketing of ITA Airways' belly capacities following its takeover and integration into the Lufthansa business. Offsetting some of the gains made in higher revenues were higher fuel and charter costs, which had a negative impact on expenses. The strong performance would have helped negate the impact of the loss of its four aircraft Airbus A321 regional freighter fleet during the quarter as a result of Lufthansa CityLine operations being stopped as part of measures aimed at tackling rising costs and labour disruption impacting its operations. Those aircraft were operated by CityLine and have been on the ground since April as Lufthansa continues to weigh up its options. Elsewhere, the cargo business was also affected by pilot strikes in the second quarter. In terms of business developments during the quarter, the ALPHA phase of Lufthansa Cargo's €600m LCCevo air cargo project at Frankfurt Airport commenced operations and it merged its Heyworld e-commerce and CB Customs Broker businesses into a new subsidiary, GlobeCross. The company also highlighted its Bold Moves strategy in a press release. The strategy has the objective of re-establishing Lufthansa Cargo among the world's top three leading cargo airlines by 2030, based on freight tonne-km.

Hacis upgrades e-commerce shipment processing

Hong Kong Air Cargo Industry Services Limited (Hacis) has launched a new storage control system to speed up the processing of e-commerce goods. The Hactl-owned subsidiary invested in its Hacis Storage Control System (HSCS) at its e-commerce fulfilment centre as part of efforts to support the ongoing growth of e-commerce demand. The new system integrates advanced automated storage and retrieval technology with high-speed tote stacker cranes and Automated Guided Vehicles working together to retrieve and deliver inventory to workstations for order processing, creating a seamless "goods-to-person" model. The new system is also integrated with the warehouse management system so it can synchronise real-time data with customers' planning systems and e-commerce platforms to improve visibility and inventory control throughout the fulfilment cycle. The system should reduce manual handling and improve operational efficiency and inventory accuracy. Hacis said that it would double its E-commerce Fulfilment Centre's (HEFC) daily outbound processing capacity as well as improving turnaround times and support "increasingly demanding fulfilment schedules". Ringo Chan, executive director of Hacis, said: "E-commerce supply chains continue to evolve rapidly, with customers demanding greater speed, visibility and reliability. "This new system reinforces our commitment to innovation and enhances our seamless fulfilment‑to‑flight ecosystem, helping customers connect more effectively with global markets." The company has been investing in its HEFC in recent years. In 2023, it added a climate-controlled "one-stop-shop" facility to cater for the growth in cool chain e-commerce shipments at Hong Kong International Airport.

Gatwick Airport's second runway challenge dismissed in court

Gatwick Airport in the UK has been given the all-clear to develop and operate a second runway full time after a legal challenge to the expansion project was dismissed. The UK government gave development consent for Gatwick's second runway in September last year, meaning the airport would be able to put its backup runway into regular use. However, an environmental and noise judicial review was brought by the Gatwick Area Conservation Campaign and Communities Against Gatwick Noise Emissions. This review was dismissed by the High Court in June, prompting the campaigners to seek permission to appeal the High Court decision. However, on Tuesday, the Court of Appeal refused permission. Under the former planning agreement, Gatwick's northern runway is used only when the main runway is closed for maintenance or emergencies. A £2.2bn project will see the northern runway slightly repositioned. The first flights are expected to operate from the repositioned runway from 2030, adding 100,000 additional flights each year. Logistics UK and the British International Freight Association (BIFA) have both previously backed Gatwick's plans. Heidi Alexander, transport secretary, said: "This is a major milestone for Gatwick for local communities, with expansion unlocking investment and creating thousands of new jobs. "Around 13m more passengers and 100,000 more flights will give holidaymakers greater choice and strengthen global links to help make the UK one of the most attractive places in the world to invest. "We'll back expansion that supports growth and our climate goals. To drive forward sustainable change, we're also investing over £219m for green fuel production to cut emissions from flying and secure the future of aviation."