News / AF-KLM Cargo's 2023: more capacity, but less volume and revenue

The commercial relationship between AF-KLM and CMA CGM Air Cargo netted some €20m ($21.6m) in the nine months to 31 December, according to the Franco-Dutch carrier’s 2023 results, out today.

Launched in April 2023, the planned 10-year deal was to see the carriers combine capacity and networks, and give CMA customers access to the dedicated online platform, myCargo, allowing them to book and combine flights on any of the airlines.

However, the deal was terminated – and those processes need to be dismantled by 31 March. AF-KLM said in its full-year report: “Air France-KLM and CMA CGM have begun discussions on new terms and conditions of a commercial relationship to operate independently from 31 March onwards.”

CMA CGM remains a “core shareholder”, but the shipping group will leave the airline’s board of directors at the end of March.

AF-KLM Group made revenues of some €30bn in 2023, up nearly 14%, while net income was €934m. But the carrier said its operating results were impacted by cargo unit revenue, as well as geopolitics and disruption in Q4, when cargo unit revenue fell 32%.

Volumes in tons for 2023 fell 6% year on year, to 875,000, while capacity rose 6%, load factors fell 5.4 percentage points. Total cargo revenue hit €2.5bn, down 29%. Unit revenue per ATK was €14.29, down 38%.

Air France, while bigger, reflected slightly worse results than its Dutch counterpart. Revenue tonne km fell 7%, while capacity rose 7%; load factors fell 6 percentage points. At KLM, RTK fell 3%, while ATK rose 6%, and load factors were down 4 percentage points.

The group currently operates six freighters: two 777Fs (AF); and four 747-400s (KLM). Eight A350Fs are on order, arriving two a year from 2026.

Meanwhile, IAG Cargo also announced its 2023 results today, rather disingenuously comparing its commercial revenues with 2019, when freight rates were lower, broadly speaking.

It boasted 3.5% growth on 2019 revenue, up to €1.1bn – but that was more than 28% lower than in 2022. Yields, it acknowledged, were down nearly 40% year on year, but volumes in CTK rose some 17%.

David Shepherd, CEO of IAG Cargo said: “Against a challenging macro-economic backdrop and unforeseen disruptions within the cargo industry, we remained laser-focused on future-proofing our business through investing in premium products, upgrading facilities and up-skilling our talented workforce. As a result, the business continues to perform well against pre-pandemic levels.”