2020 - 2025
The diversification years
As Cargolux celebrated its 50th anniversary, the Covid-19 epidemic was fast sweeping across the world and reaching European borders.
The covid years
As Cargolux celebrated its 50th anniversary, the Covid-19 epidemic was fast sweeping across the world and reaching European borders. The beginning of 2020 was marked by a significant slow-down in the air cargo industry with China announcing extended factory closures after the Lunar New Year.
This confinement, coupled with drastic sanitary measures would mark the beginning of an unprecedented period in recent history; a global pandemic. The ensuing restrictions imposed in countries worldwide would force so-called non-essential businesses to cease their activities, and strongly restrict international travel, especially by air.
Just days after a vast celebration was held at the HQ in Luxembourg for the company’s Jubilee, the local government announced a strict confinement. As the country shut down, all employees who were able to work remotely did so while the others navigated sanitary protocols including segregated shifts, personal protective equipment and health monitoring guidelines.
While the world came to a standstill, however, demand for air cargo capacity soared. Grounded passenger carriers meant scarce belly capacity while global supply chains and e-commerce required fast and reliable transport to meet demand worldwide. This unexpected boom in the industry had customers grappling for space leading to the emergence of new players in the market and the concept of “preighter”; passenger aircraft temporarily converted to or used as freighter.
This unprecedented situation and the vacuum in the market required Cargolux to apply increased flexibility to respond to the demand. Ever changing sanitary measures in different countries and extreme border controls worldwide presented unique challenges. The situation was continuously monitored and Cargolux teams across the globe worked together to ensure flight crew and essential personnel could maintain business continuity.
Throughout this high production period, Cargolux provided an air bridge between Asia - China in particular - and Europe. These years were the most intense for the airline that registered the highest volumes in its history, they also proved to be the most financially profitable. This success enabled Cargolux to consolidate its balance sheet and look towards the future with confidence.
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Navigating geopolitical challenges
This new decade was also marked by increased geopolitical tensions worldwide. Unrest first emerged in the Red Sea with repeated attacks on container ships. This drove maritime freight operators to choose longer journeys, redrawing traditional sea faring routes and significantly lengthening delivery times. Customers in turn sought different or supplementary solutions, turning to air cargo for urgent or sensitive shipments.
Following the outbreak of the war in Ukraine in 2022, Cargolux immediately adapted its operations to avoid Russian airspace and the conflict zone. The entire East-bound network was reviewed, and operations were adjusted to ensure Cargolux could continue providing its services. Technical stops in our station in Novosibirsk were suspended indefinitely and the Cargolux staff members were re-located to neighboring stations. Crew were evacuated on the day hostilities broke out. Cargolux also ceased all business relations with Russian entities and through its export control process ensured that the company did not breach any sanctions imposed.
Another consequence of this devastating situation was the disruption of supply chains and the shortage of raw material. The closure of Russian airspace and Western sanctions against Russia intensified geopolitical tensions and trade wars.
Global commercial tensions further intensified from early 2025 when the United States, under the second Trump administration, imposed a series of tariffs on imported goods. As trading partners respond with sanctions of their own, the tug-of-war continues, impacting important revenue streams such as e-commerce.
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The path to sounder operations
Cargolux is committed to mitigating the impact of its operations on the environment and communities it operates into. In October 2021, the airline announced the launch of a dedicated Sustainable Aviation (SAF) Program, an additional step in the company’s endeavor to reduce CO2 emissions. This milestone lays the foundation for a customer sustainability program, that will offer more sustainable options for their transportation requirements.
A noteworthy achievement in the SAF journey is that Cargolux was the first foreign carrier to uplift SAF in China. The operation took place at Zhengzhou airport (CGO), the airline’s main hub in China, with the full support of local partners and shareholders, HNCA.
Building on its future geared commitments, in 2024, Cargolux was one of two airlines to sign an offtake and investment partnership agreement with Norsk e-Fuel. This next generation company aims to drive the transition to renewable aviation by establishing the industrial production of sustainable fuels based on CO2 and water. Cargolux supports e-fuel will as a major pillar to achieve net zero carbon emissions by 2050 in aviation. E-Fuels are based on abundant feedstock such as carbon dioxide and when produced with green electricity, they offer one of the highest greenhouse gas savings compared to conventional jet fuel.
Investment into the future is a priority for Cargolux and one of the groundbreaking decisions was the choice of new aircraft to replace the ageing 747-400F. Speculation as to the model was rife within the industry, especially since Cargolux has been flying the 747 since 1979 and operating a single type fleet for four decades. Various paths were explored by the company and the suspense was finally lifted in October 2022 when Cargolux announced an order of 10 Boeing 777-8 freighters with options for six additional airplanes. A signing ceremony was held at the Cargolux HQ in Luxembourg in the presence of Cargolux employees.
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Looking towards the future
True to its pioneering spirit, in 2023, the Cargolux Group took the bold decision to diversify its activities with not one, but two completely new activities. The first endeavor, was the creation of a fully owned subsidiary dedicated to Ground Handling activities; Luxcargo Handling (LCH). The company was incorporated in response to Luxair Cargo’s desire to remove itself from cargo handling operations at the Luxembourg airport hub.
Following a Luxair cargo bid to find an alternative provider, LCH participated in a tender and was granted one of two licenses for ramp handling at Luxembourg airport, also granting LCH a permit to handle third party airlines. In November 2023, Cargolux officially announced that its subsidiary would be taking over all Luxair’s ramp and warehouse handling operations at Luxembourg’s Findel airport. Operations were smoothly taken over in May 2024 and significant investments planned to develop and enhance ground operations at the international airport.
The other, perhaps a lot more surprising diversification effort, is the launch of a brand new activity, unrelated to Cargolux’s core business; aerial firefighting. This exciting new venture saw the launch of a brand new unit, Aquarius Aerial Fighting, that aims to build on its mother company’s safety management experience and operational excellence to become a recognized provider of aerial firefighting services. Over the past years, wildfires have become a growing global issue that requires a rapid response. Not only do such fires emit significant amounts of CO2 but they pose a significant danger to lives and livelihoods. This new venture is a testament to Cargolux’s engagement to putting its expertise to the service of sound practices.
Starting with an initial fleet of 3 Air Tractor AT-802F Fire Boss aircraft at the time of its launch, Aquarius aims to build a fleet of 12 units. The flight and maintenance crew comprise a savvy blend of dedicated Cargolux employees and industry experts in the field of aerial firefighting. In the Summer of 2024, Aquarius was deployed on its first successful mission. With three aircraft based in the South of Spain, AFF provided aerial firefighting support for the Spanish government.
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