Cargolux reported record profits last year as constrained belly hold capacity in passenger flights boosted demand for all-cargo aircraft operations.

The all-cargo airline said in 2020 when it also celebrated its 50th year, Cargolux saw a 3745% year-on-year increase in net profits to US$768.7 million, compared to its previous record high of US$211.2 million seen in 2018.

Cargolux said its performance also resulted in revenues of US$3.17 billion — also posting a growth of 40% over 2019.

"2020 was marked by the outbreak of the Covid-19 global pandemic that heavily impacted the aviation industry, including air cargo. The outlook for the year was originally quite bleak with production halted in China, due to the outbreak of what ultimately resulted in the Covid-19 pandemic. The situation resulted in a significant shortfall in available air freight capacity due to the grounding of most, if not all, long-haul passenger operations," Cargolux said.

"We experienced unprecedented demand for the transport of PPE (Personal Protective Equipment) supplies as well as for other products which came to rely on air transport to keep logistics lines intact. Cargolux played a key role in delivering essential supplies throughout the Covid-19 crisis, alleviating the void left by grounded passenger aircraft and keeping supply chains moving," it added.

As a result, Cargolux saw demand increased for the airline as volumes in terms of tonnes sold increased by 9.7% year on year in 2020 to 1.1 million tonnes.

Its load factor in 2020 was also up by three percentage points on a year earlier at 68.7%.

The air freight operator noted that as a result of the demand increase and passenger airlines seeing their cargo networks drop due to lost bellyhold capacity, Cargolux is currently (in 2021) ranked fourth in IATA’s ranking of the world’s top 25 international scheduled cargo carriers.

"The emergence of the COVID-19 pandemic highlighted the importance of air cargo in the global supply chain. True to its flexible and agile processes, Cargolux strived to respond to the increased demand worldwide. The company adapted its network to optimize its services and operate according to global market needs. The airline’s dedicated 747 fleet proved to be a strong asset in an operationally challenging year. Demand for charter services also remained strong throughout the year," it said.

For this year, Cargolux said uncertainty remains with the evolution of the coronavirus seen and the pace and effectiveness of vaccination programs.

"This development would indicate that the supply chain will continue to need to rely on freighters to keep logistics chains running as the bulk of long-haul passenger aircraft remain grounded," it said, noting that Cargolux remains committed to continue adapting its services to market demand and ensure supply chains keep moving and goods are delivered where required.

Cargolux appoints new Chairman of the Board

Meanwhile, Cargolux also announced the appointment of Christianne Wickler as Cargolux’s new Chairman of the Board of Directors — becoming the first female Chairman of the Board of Directors of the all-cargo carrier.

"An entrepreneur and mother of four, Wickler took over a small petrol station in Oberpallen, in 1982, which her father had entrusted to her. She developed the Pall Center, an “anti-gloom” business concept that is close to the people, the banner of a group of supermarkets and grocery stores that she has masterfully managed for 38 years," the carrier said.

Wickler is also co-founder of the citizen collective “5fir12”, and a former member of Parliament.