Air Canada abandons plans for two Boeing 767 converted freighters

Air Canada has again scaled back growth plans for its startup freighter division, announcing Thursday it has canceled orders with a vendor to convert two Boeing 767-300 passenger jets into freighters.

The airline took a one-time charge of US$14.5 million for backing out of reservations for production slots at Israel Aircraft Industries, it said in its earnings report for the first quarter.

Air Canada’s freighter airline division is nearly two and a half years old and now consists of eight Boeing...

https://www.freightwaves.com/news/air-canada-abandons-plans-for-two-boeing-767-converted-freighters

Labor actions drag Lufthansa Cargo to first-quarter loss

The cargo subsidiary of Lufthansa Group had an adjusted operating loss of $23.5 million in the first quarter, down from $166 million in the same 2023 period as strikes by cabin and ground staff negatively impacted performance.

The company also attributed the loss to inflation and a challenging market environment, although in reality conditions for cargo carriers are improving as evidenced by 11% demand growth and rising rates during the quarter. The industry growth looks better against a weak...

https://www.freightwaves.com/news/labor-actions-drag-lufthansa-cargo-to-first-quarter-loss

Cargo IT meltdown hits Air France-KLM earnings

Air France-KLM Group said Tuesday that the bungled rollout of a new cargo IT system in March contributed to lower revenues during the first quarter, which in turn acted as a drag on earnings for the corporation.

The joint venture reported cargo revenues fell 16.5% year over year to 562 million euros ($602.3 million) even as traffic in revenue ton kilometers — a measure of revenue generation based on how much cargo is carried times distance — increased 4%. More broadly, the company’s operating...

https://www.freightwaves.com/news/cargo-it-meltdown-hits-air-france-klm-earnings

Inflation tempers Cargojet’s outlook despite Q1 volume growth

Modest growth in domestic e-commerce volumes plus improved aircraft utilization from network rebalancing helped Canadian airline Cargojet further stabilize performance during the first quarter, setting the table for growth this year despite lingering concerns about inflation. 

Cargojet (TSX: CJT) reported Tuesday that revenue of US$169 million was nearly flat year over year, while adjusted earnings excluding accounting measures and taxes ticked up 3.6% to $57 million, in line with analysts’...

https://www.freightwaves.com/news/inflation-tempers-cargojets-outlook-despite-q1-volume-growth

US Postal Service to migrate air cargo to UPS during summer

The U.S. Postal Service plans to shift daily air cargo volumes to UPS before the contract with FedEx expires in September to ensure no service interruption for customers heading into the busy holiday shipping season, the agency and company officials said Tuesday. 

UPS’ (NYSE: UPS) ability to leverage its integrated air-and-ground network and bypass its main sort hub in Louisville, Kentucky, will enable the integrated express carrier to better profit from transporting domestic airmail for the...

https://www.freightwaves.com/news/us-postal-service-to-migrate-air-cargo-to-ups-during-summer

United Airlines sets bar for Q1 cargo performance

United Airlines, buoyed by a significant recovery in market conditions, delivered surprisingly strong cargo results in the first quarter that likely will be the benchmark for comparing the performance of other airlines.

United (NASDAQ: UAL) reported after Tuesday’s market close that sales for freight and mail were $391 million, a notably small dip of 1.8% from the same three-month period in 2020 considering the air logistics sector’s 16-month slump that lasted into the second half of 2023 and...

https://www.freightwaves.com/news/united-airlines-sets-bar-for-q1-cargo-performance

Decline in Delta Air Lines’ Q1 cargo revenue has silver lining

The rate of decline in cargo revenue at Delta Air Lines slowed further in the first quarter, reflecting an overall improvement in global market conditions for airfreight. 

Atlanta-based Delta (NYSE: DAL) on Wednesday reported record first-quarter adjusted revenue of $12.6 billion, but cargo revenue fell 15% year over year to $178 million. The world’s second-largest passenger airline by passengers carried almost never mentions cargo beyond a line on the income statement, but the earnings news...

https://www.freightwaves.com/news/decline-in-delta-air-lines-q1-cargo-revenue-has-silver-lining

Lufthansa Cargo profit tumbled 86% last year

Sharply lower yields due to excess capacity from passenger flights combined with higher costs led to an 86% plunge in Lufthansa Cargo’s operating profit in 2023, underscoring how challenging the year was for the entire air logistics industry.

Lufthansa Group (DXE: LHA) on Wednesday reported its third best financial results in history, but the cargo subsidiary was battered by lower demand and rates as the global economy returned to more normal patterns following the COVID crisis. With more...

https://www.freightwaves.com/news/lufthansa-cargo-profit-tumbled-86-last-year

Kuehne+Nagel operating profit cut 50% in 2023

Global logistics powerhouse Kuehne+Nagel suffered substantial revenue and profit erosion in 2023, including the final quarter, as excess air and ocean capacity combined with a post-COVID slow down in trade lowered rate levels, hurting bottom lines across the freight transportation sector.

Executives said they are seeing some stabilization in demand , but don’t expect a huge improvement this year. 

In conjunction with Friday’s quarterly results, Kuehne+Nagel announced an agreement to acquire City...

https://www.freightwaves.com/news/kuehnenagel-operating-profit-cut-50-in-2023

Freightos loses $19M, eyes profit breakthrough in late 2026

Freightos, a neutral sales platform for international air and ocean shipments, expects to make its first profit in the fourth quarter of 2026, company leadership said Monday after posting an adjusted loss of $19 million for 2023.

The results follow losses of $14.6 million and $12.4 million in 2022 and 2021, respectively. In July, Freightos laid off 13% of its staff, or about 50 people, and implemented other cost controls.

Jerusalem-based Freightos estimated it will narrow losses to about $14.5...

https://www.freightwaves.com/news/freightos-loses-19m-eyes-profit-breakthrough-in-late-2026

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