Record results for Cargolux in 2021

posted on 27th April 2022 by Eddie Saunders
Record results for Cargolux in 2021

The Cargolux Group, (Cargolux), achieved its best year on record in 2021:

1) Revenues of US$ 4.4 billion, an increase of 40% over 2020.
2) Earnings Before Interest and Tax (EBIT) of US$ 1.72 billion, an increase of 73 % over 2020.
3) A Profit Before Tax of US$ 1.7 billion, an increase of 94% over 2020.
4) A Profit After Tax of US$ 1.3 billion, an increase of 68% over 2020.

The increase in financial performance was driven by both an increase in tonnage and higher yields.

This allowed the further strengthening of the group’s Balance Sheet especially in the building up of its cash reserves.

Business highlights

The market dynamic in 2021 continued to be strongly influenced by the pandemic and its consequent repercussions.

The capacity shortage and strong yields experienced in 2020, continued throughout 2021 where demand remained strong.

Backlog issues on the global supply chain, ocean freight capacity constraints, and limited belly-hold availability led to sustained demand for air cargo services with volumes close to peak season production throughout the year.

Operationally, 2021 was more challenging compared to 2020.

Quarantine measures introduced in various countries, confinement of crew to hotels, lack of suitably qualified staff and infrastructure, especially in the USA, all compounded by full warehouses and a shortage of trucking services.

The temporary blockage of the Suez Canal also resulted in customers further relying on air cargo for their shipments.

The resulting capacity shortage therefore remained under pressure, resulting in year-round high volumes and strong yields reflected in the figures above.

2021 again highlighted the importance of the air cargo industry and Cargolux’s infinite capacity to adapt to unforeseen circumstances.

Cargolux consolidated its position as a leading industry player ranking no. 5 in IATA’s top 20 cargo carriers based on international scheduled freight ton kilometers, (FTKs), flown.

At the end of December 2021, the total fleet of 30 aircraft comprised sixteen Boeing 747-400 freighters (10 B747-400Fs and 6 B747-400ERFs) and fourteen Boeing 747-8 freighters.

This uniform fleet enables Cargolux to respond to changing market conditions in a flexible and timely manner.

Operational KPIs

2021​ Δ 2021/2020
Block Hours 152,785 +8.7%
Cycles​ 25,322 +6.5%
Aircraft utilization (block hours/day) 14:17 +3.8%
Load Factor (FTK/ATK)​ 72.8% +4.1ppt

Profit & Loss and Balance Sheet KPIs (US$ m)

US$ million​ 2021​ 2020
Total Revenues​ 4,429 3,171
EBIT​ 1,718 991
​Profit before Tax 1,688 869
Net Profit​ 1,295 769