Aircraft, capacity, network and rates – these are the core topics in cargo. What has been neglected so far are emotional aspects, emphasized Lufthansa Cargo CEO, Ashwin Bhat during his company’s press conference at Air Cargo Europe last week in Munich. At the same time, he named a role model that his cargo airline could follow: Lufthansa Group member, Austrian Airlines (AUA).
This translates into the service that AUA offers its passengers. It is outstanding, lauded Mr. Bhat. “Their crew demonstrate a hospitality mentality that is second to none.” He could also have mentioned Brussels Airlines, managed by Dorothea von Boxberg, his predecessor at Lufthansa Cargo. On one of the airline’s advertising posters, a flight attendant with a tear in her eye, waves to passengers as they disembark from the plane, suggesting a kind of separation pain. The message of the passion poster: We loved having you on board. Too bad you’re leaving!
Mix of empathy…
That said, Lufthansa Cargo pilots should certainly not wave a container or a pallet goodbye as they are unloaded from a freighter aircraft. However, the mentality of making others feel valued, cared for and welcome would be a door opener for service partners, ground staff, customers or warehouse employees, especially at an airline whose employees are said to be somewhat snooty.
… and straight talk
In addition to questions of empathy and emotional intelligence, the meeting focused on typical hard facts. For instance, Lufthansa Cargo’s successful first quarter with a growth rate in sales of almost 9% year-over-year. According to Frank Bauer, CFO and soon to become COO (01JUL25), key strategic targets have already led to positive results. For example, delivery notification in Q1, 2025 increased by 5% compared to the first quarter of 2024. Costs have been reduced, and productivity has improved. “We aim to get back to the top three carriers worldwide,” Bauer declared. Currently, the carrier is in sixth place but faces cut-throat competition from state carriers based in the Middle East. The magic formula for climbing further up the ladder of success is premium quality + operational reliability + capacity growth + increase in customers. The sought-after hospitality mentality is a key pillar of the latter aspect.
Concentrating on Italy
Italy is the largest market for Lufthansa Cargo in Europe outside the German home market in terms of revenue and tonnage, added André Schulz, who heads Lufthansa Cargo’s Europe region. The integration of the ITA long-haul fleet has increased the group’s belly capacity by 20%, he stated. ITA complements the existing route map of the Lufthansa Cargo Group, especially towards Latin America, but also in Africa, emphasized the manager. Initially, sales on ITA’s inbound routes ex Buenos Aires, Sao Paulo and Rio de Janeiro, would be marketed by Lufthansa Cargo’s stations in Argentina and Brazil. In a further step, selling capacities in the opposite direction will follow. Lufthansa Cargo will set up a feed + de-feed system in Italy to be accomplished by the company’s own station in Milan.
Multi brand and hub strategy
The integration of ITA into the Lufthansa Group was a major step for both sides. The Rome-based company operates with 99 jetliners, including 20 wide body passenger aircraft. “Their lower deck capacity equals the main decks of three freighters,” stated Ashwin Bhat. After Frankfurt, Vienna, Brussels and Munich, Rome becomes the fifth hub of the five airlines within the Lufthansa Cargo Group. He omitted Swiss and Zurich, as Swiss WorldCargo markets its capacity by itself.
Stepping up capacity
Lufthansa Cargo will add a further seven B777 freighters to its own freighter fleet for long-haul routes by 2028, emphasized CEO Bhat. The four A321 P2F conversions in the regional fleet will also be expanded as soon as the market requires it. In addition, new long-haul passenger aircraft capacity will be added, further increasing the capacity available for cargo transportation. Bhat expressed concern about the situation in the USA and the uncertainty in the global markets caused by the Trump administration. As a result of the so-called Liberation Day, when the US president imposed high tariffs on many countries, air freight rates on flights across the North Atlantic have fallen by between 20% and 25%. However, this does not apply to tonnage, which has so far remained stable. He did not want to speculate on further developments in this important traffic region for the Lufthansa Group.
