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AF KLM Cargo continues to benefit from shipper push to air

Air France KLM Martinair (AFKLMP) Cargo saw its revenues and volumes improve in the third quarter as shippers continued to utilise airfreight to avoid disruption in ocean shipping. The cargo division saw third-quarter revenues increase by 25.2% year on year to €677m, while volumes increased 5% to 236,000 tons. Cargo traffic in revenue tonne km (RTK) terms improved by 8% to 1.8bn RTK, while capacity was up by 2.3% to 3.9bn available RTK and the cargo load factor increased by 2.4 percentage points to 46%. Explaining the revenue and volume performance, the company highlighted disruption in ocean shipping and AI demand, which more than offset a decline in e-commerce volumes from Asia to Europe following the introduction of an import charge in July. "Demand continued to outpace capacity growth, supported by disruption to maritime routes around the Suez Canal and Strait of Hormuz, which led some shippers to move urgent, high-value goods by air," AFKLMP Cargo said. "The surge in demand for airfreight capacity associated with AI supply chains contributed to a tighter market environment. "This created opportunities for Air France-KLM Cargo to attract additional cargo volumes and opportunities for full freighter charters supporting our yield performance across the Group's network. "These factors supported the business amid a sharp decline in e-commerce shipments coming from Asia following the taxation of small parcels." The company added that freighter availability was limited by scheduled and unscheduled maintenance. In comparison, German rival Lufthansa Cargo saw its cargo traffic increase by 11% in the third quarter, while revenues were up 26%. The Frankfurt-based airline said it benefited from broad-based regional growth, additional India flights, and pharma and semiconductor demand growth. The overall Air France KLM Group saw third-quarter revenues increase by 7.6% to €9.9bn and net income was up 22.1% to €938m. Handling consolidation The increase in cargo revenues and volumes came on the same day it was announced that KLM will consolidate its cargo handling activities at Schiphol to its own warehouse as part of measures to improve its financial performance. "This will help prepare KLM Cargo for the new cargo terminal, scheduled for completion in 2035, and enable it to attract more transfer cargo passing through Schiphol," KLM said in an announcement. In 2024, Menzies Aviation announced a deal that would see it provide cargo warehouse and ramp handling services for all KLM/Martinair freighter operations at Schiphol for five years.

JB Hunt faces data breach lawsuits as hackers claim haul of carrier records

Companies that have faced a cyber attack are now increasingly likely to face lawsuits too, from customers or staff over any breach of data security. JB Hunt is the latest: it is facing four proposed class actions, after a cybercrime group claimed to have taken employee information and millions of business records from the US transport and logistics company. The suits, filed in the Western District of Arkansas on 27 and 28 October, allege JB Hunt failed to protect employees' personal information. Named plaintiffs include current and former workers. The claims have not been tested in court, and no class has yet been certified. Cyber attacks often leave logistics companies facing litigation beyond the immediate cost of restoring systems. Motor carriers sued freight broker TQL after a breach exposed business information, while employees and applicants brought claims against cold-chain operator Americold over compromised personal data. Expeditors has also faced claims from customers alleging losses after a 2022 attack disrupted services. The JB Hunt attacker, calling itself WhiteArmor, posted its claim on or about 23 October, although it is not clear exactly when the hack took place. The complainants repeat its claim to hold 140,838 employee records for a $5m ransom. One complaint also lists what WhiteArmor claims to hold: 1.7m carrier contacts, 38.2m invoices, 973 Microsoft 365 mailboxes, and records concerning 374,000 organisations. JB Hunt has not confirmed what information was accessed or how many people were affected. JB Hunt has acknowledged an incident took place, while stressing that freight operations have continued. A spokesperson reportedly told local media it was investigating "unauthorised access to certain information within an isolated portion" of its technology system. "Our systems remain operational, and there has been no disruption to our ability to serve customers," the spokesperson said. JB Hunt added it had brought in a cybersecurity firm, notified law enforcement, and revoked the unauthorised access. The lawsuits allege inadequate data security and seek damages and changes to the company's security practices. Aaron Hunter, a former employee, said in his complaint that he had received no individual breach notice as of 27 October, when he filed his complaint. For shippers and carriers, the unanswered question is whether any commercially sensitive information was accessed. The business data figures cited in the lawsuits are the hackers' assertions, while the legal claims filed so far focus on employees' personal information. Following a 2022 cyber attack that shut down most of Expeditors' operating systems, customers including iRobot and POC USA sued the forwarder over alleged losses from interrupted warehousing and deliveries. JB Hunt says its ability to serve customers has not been disrupted and the lawsuits do not allege any losses from halted freight movements.

Lufthansa Cargo sees operating profit soar in Q3

Lufthansa Cargo has seen its operating profits increase by more than 200% as the company has benefited from semiconductor demand and new services to India. Lufthansa's logistics division, which includes Lufthansa Cargo, time:matters, Jettainer, HeyWorld and a 50% stake in AeroLogic, saw revenues for the third quarter of the year increase by 26% to €1bn while earnings before interest and tax jumped by 230% to €162m. Volumes were up 11% to 2,546m revenue cargo tonne km (RCTK), while capacity increased by 5% to 4,010m available RCTK and the load factor was up three percentage points to 63.5%. In a results presentation, the logistics business said that performance had been boosted by broad-based regional growth and that additional India flights had supported volume and yields. The company highlighted that temperature-controlled freight revenues were up 33% against the previous year driven by strong pharma and semiconductor growth. The company added that continued cost discipline enhanced profitability alongside strong volume and yield growth and pointed out that the third quarter of the year tends to be one of its weakest in terms of financial performance. The carrier's freighter business had also been able to benefit from the reduction of bellyhold capacity in the Middle East caused by the ongoing conflict in the region. "In the context of the significantly changed market environment due to the conflict in the Middle East and the corresponding reduction in competitors' capacities in the region, Lufthansa Cargo's freight business gained momentum in overall terms," the company said. "The reduction in the volume of capacity on the market and the strong rise in fuel costs led to a significant increase in yields compared to previous quarters." Demand was driven by continued strong business in the Asia/Pacific region in particular, as well as in the Americas, the company added. However, third-quarter costs were also on the rise - up 16% year on year to €924m - due to higher fuel and charter costs. Earlier this week, Lufthansa Cargo completed its acquisition of Germany-based handler LUG aircargo handling to strengthen its infrastructure for future growth.