Lufthansa Cargo targets high-value tech, auto, pharma sectors

<p>Lufthansa Cargo last year devoted more strategic focus to serving the pharmaceutical, automotive, aviation, semiconductor and airmail sectors, creating additional avenues for profitable growth beyond general freight.</p>
<p>The expansion of high-margin tailored transportation offerings for specific industry sectors contributed to the airline’s 29% growth in operating profit in 2025.</p>
<p>The cargo subsidiary of Deutsche Lufthansa AG (FRA: LHA) generated adjusted earnings before interest and taxes of 324 million euros, equivalent to $377 million, according to financial results issued this month.</p>
<p>Lufthansa Cargo operates 12 large Boeing 777 freighter aircraft and four standard Airbus A321 converted freighters. It also manages freight carried in the bellies of passenger aircraft at sister carriers Lufthansa Airlines, Austrian Airlines, Brussels Airlines and ITA Airways. Lufthansa Cargo also is responsible for marketing the capacities of six 777 freighters in the AeroLogic joint venture with DHL Express.</p>
<p>Last year, Lufthansa Cargo devoted more strategic focus on serving the pharmaceutical, automotive, aviation, semiconductor and airmail sectors, creating additional avenues for profitable growth beyond general freight.</p>
<p>In July, Lufthansa Cargo became the first airline to join the high-tech network “Silicon Saxony,” opening the door for the airline to develop product offerings for highly sensitive semiconductors and strengthen its presence in the innovation economy. Silicon Saxony is Europe’s largest association of companies in the microelectronics, semiconductor and IT sectors. The freight airline said it intends to work in committees and working groups on optimized logistics solutions for sensitive electronics components as well as joint quality and process standards.</p>
<p>For automotive customers, Lufthansa Cargo has further professionalized its transport process for entire vehicles and developed a new, standardized procedure for lashing down cargo and ready-for-loading delivery. The new methods reduce the volume of handling work, improve process quality and create additional revenue potential, according to Lufthansa’s annual report.</p>
<p>The carrier recently described how it has operated special charter flights for automotive customers, including an A321 that flew on less than 24-hour notice from Frankfurt, Germany, to Vienna, Austria, to pick up a load of components and deliver them to Belgrade, Serbia, to keep a production line from going down. Two additional charter flights followed in subsequent days, it said in a news release.</p>
<p>In February, Lufthansa Cargo operated 11 A321 freighter flights from Casablanca for Mercedes-Benz in 11 days and transported a Lamborghini Aventador sports car from Cairo to Europe on a passenger jet.</p>
<p>The all-cargo carrier also expanded offerings in the aviation sector. Last year, it transported more than 1,000 aircraft engines, which require precision planning and handling. Here too, Lufthansa Cargo further standardized procedures, adjusting loading parameters for selected engine types and strengthening coordination between global stations and headquarter specialists.</p>
<p>Digital optimization and automation</p>
<p>During 2025, Lufthansa Cargo launched initiatives using artificial intelligence and automation to improve operations and service.</p>
<p>The company, for example, introduced new software which uses artificial intelligence to directly transfer booking inquiries from e-mails to the in-house booking system. Since August, customers have experienced a more simplified, efficient online booking process. Standard shipments can now be booked roughly twice as fast as previously, according to the annual report. The offering is supplemented with a revised shipment tracking system, with an improved overview and proactive notifications throughout the transport chain.</p>
<p>The cargo airline also developed virtual reality training for aircraft loading supervisors.</p>
<p>Automation is also helping with ground handling. Since November, driverless tow tractors have been regularly used at the Lufthansa Cargo Center in Frankfurt, both outdoors and in two warehouses, according to a recent company newsletter. The vehicles, manufactured by TractEasy, transport freight around the clock between the import and export terminal, traveling about 1,240 miles per month. Lufthansa Cargo says it plans to deploy three types of driverless transport vehicles in the future to relieve workers of routine tasks, freeing them for value-added activities while helping the company address a growing shortage of skilled labor.</p>
<p>Additional pilot projects will follow in the coming years, with the goal of having a highly automated ground transport system at airport terminals by 2030. Later this year, an automated special vehicle for transporting unit load devices will be implemented, with automated forklifts to follow in 2027. In addition, a central fleet management software will be introduced to assign all transport orders to the most suitable driverless vehicle within the fleet.</p>
<p>Meanwhile, Lufthansa Cargo completed the central high-bay warehouse, the first major construction phase in the modernization of its cargo center at Frankfurt airport. The nearly $700 million project, which has seen the total cost increase by $40 million since mid-2024, is expected to be completed in 2030. The warehouse will be highly automated for efficient storage and handling. At the end of 2025, the first phase of the new Lufthansa Cargo headquarters campus was also completed.</p>
<p>In February, the carrier expanded its short-and-medium haul freighter network, served by the A321, to Rome-Fiumicino International Airport and Algiers airport in Africa. The new Rome connection operates once a week on Saturday from Lufthansa’s Frankfurt hub. From Rome, the freighter goes to Istanbul and then to Munich, Germany. Rome has become a southern hub for Lufthansa after it bought a large share of ITA Airways. The Algiers flight operates once per week.</p>
<p>The regional freighter network now comprises 22 locations in Europe, the Middle East and Africa.</p>
<p>Enhanced ULD tracking</p>
<p>Group cargo revenue, which also includes Swiss Air, increased 4% to $3.7 billion on slightly higher demand that countered a slight decrease in yield. Global market demand last year grew about 4% from 2024. Lufthansa said its revenue was buoyed by business from Asia.</p>
<p>Capacity was 5% higher than in the previous year due to the addition of a Boeing 777 freighter in the second half of 2024 as well as the expansion of passenger flight operations. Capacity matched the 2019 pre-pandemic level for the first time</p>
<p>Total group logistics business was more than $3.9 billion, up 4% year over year. The logistics segment includes a freight forwarder that specializes in time-critical shipments, a customs brokerage, an e-commerce logistics specialist and Jettainer, an air freight container management specialist.</p>
<p>Jettainer announced on Wednesday that Lufthansa Cargo is the launch customer for its next-generation cloud-connected tracking technology for unit load devices. The new IoT solution provides real-time visibility of container movements across the global network. Instead of relying solely on fixed airport infrastructure, the system combines stationary and mobile readers, ensuring continuous tracking, even at locations with limited hardware. Airlines gain precise information on the location and dwell time of each unit, enabling faster reaction to irregularities and recovery of misplaced equipment, Jettainer said.</p>