Challenge Group expects the market in the first three quarters of 2023 to be "much the same" as current conditions as the Belgian cargo airline looked back on its milestones for 2022.

"Looking at everything we have achieved this year, and the economic environment in which this has been taking place, 2022 has been an incredible roller-coaster," Yossi Shoukroun, CEO of Challenge Group.

He noted that the year started very well, but this was disrupted by unforeseen geopolitical events, rising inflation and the ongoing rate volatility.

2023 outlook: "same vein" as today

"As for what 2023 looks like, Yossi Shoukroun is clear: based on our regular discussions with customers, freight forwarders, and shippers, we expect that the first 3 quarters of 2023 will continue in much the same vein as today, with a few seasonal ups and downs," Shoukroun added.

The Challenge Group CEO noted that for next year, the boutique cargo airline will continue its expansion focus — offering increased frequencies, more destinations, and new products.

"We are confident in our ability to grow and thrive even in this uncertain economic and geopolitical environment," he added.

Challenge Group described 2022 as an "exhilarating roller coaster ride" for the cargo carrier, which also marked "historic milestone achievements" alongside volatile challenges for the company.

For the year, it said Challenge Group transported 200,000 tonnes of freight and a whopping 350,000 tonnes handled by Challenge Handling at the Group's hub in Liège.

The year 2022 also saw a surge in animals transported by Challenge Group including more than 5,000 horses, day-old chicks or exotic animals.

"One of the highlights of Challenge Group's year was receiving the IATA CEIV Live certification and finally putting an official seal on what the Group has been successfully carrying for years," the cargo airline said, adding that it also operated more than 230 charters in the past 365 days.

Challenge Group noted that it was involved in bringing Baby Formula to the U.S. when there was a severe national shortage.

"Given that over 65% of all Challenge Airlines shipments constitute difficult, unusual and oversize cargo usually rejected by other commercial airline operators, many of the charters were leased for unique missions," the company added, noting that these included projects like transporting a satellite from Tel Aviv, Israel, to the United States, and the full stage of German metal band Rammstein for their American tour.

"Most poignant of all this year, was the transport of the famous Flemish Tapestries from Belgium to Malta last month, which not only restored the 320-year-old religious artefacts to the church in which they had been hanging for over 300 years but also signified the start of Challenge Group's newest airline," it said.

Three airlines under the Challenge Group

Challenge Group said Challenge Airlines MT had just been accorded its Maltese Air Operator Certificate (AOC) days before.

"The launch of the Maltese cargo carrier brought the Group's total number of airlines to three, now all flying under the Challenge Airlines brand name. As part of the corporate rebranding, the Group's longest-serving airline, previously known as CAL Cargo, became Challenge Airlines IL this summer, and significant investments were made in a new headquarter building in Tel Aviv, as well as the addition of two Boeing 767-300BDSF to the fleet," the statement added.

Together with Challenge Airlines BE, the Group served ten new airport destinations across Europe, the Middle East, Canada, and Asia, in 2022, almost doubling the scope of its scheduled network.