News / More investment in CMA CGM Air Cargo pledge, despite weak market

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Anyone hoping to see how CMA CGM’s airline is faring via the group’s 2023 financial results released on Friday, will be disappointed. 

Because, as before – and as with Maersk – the French shipping group files its airline results under “Other”, which also includes terminals and “other investments”. 

Internal sources have admitted that CMA’s airline had a tough year last year. The ‘Other’ category reveals revenues rose more than 10%, to $2bn, up from $1.86bn. However, ebitda fell more than 47%, to $236m. Q4 revenues were up 30%, to $549m, but ebitda fell 70%, to just $29m. 

It will be interesting to see how the addition of more capacity will impact these earnings. The financial results barely mentioned the airline, but did note: “CMA CGM Air Cargo continued to expand over the year and now operates a fleet of five aircraft, which will be strengthened in 2024 with the delivery of two Boeing 777F freighters.” 

However, CMA’s website states that this year it will introduce three 777Fs. And, from 2026, it will have four A350 freighters in its fleet. 

The other major change is that its sales and commercial partnership with AF-KLM was terminated – nine years early. CMA notes on its website: “Starting 31 March 2024, we will sell directly our capacity using our own AWB stock (2C/003) and using our own sales organisation.” 

One of the reasons it ended the partnership was its inability to work with the Franco-Dutch carrier in the US for regulatory reasons. It has yet to begin US services, despite website claims that it has “scheduled services linking Europe and Asia, and China and US”. 

It said that from this summer it would offer services between Paris and Shanghai on a 777F; same to Hong Kong; to Shanghai, Chicago, and Incheon with a 777F; the Paris, Mumbai, Guangzhou with an A330F; and Paris to Cairo with an A330F. 

With the exception of Chicago, these routes are, broadly speaking, what the airline is already flying. Last week, one A330F was flying between western Europe, Istanbul and Nairobi, while another flew similar routes and included Lagos. Its 777Fs operated between Paris, Shanghai and Hong Kong. It also offers charter flights.  

CMA CGM was given the right to fly to the US in March 2022, after it applied to the US DoT to operate between Paris and Chicago, New York and Atlanta.

CMA did note in its results that it would continue to invest, despite a weak market. It said: “Despite this challenging environment, the CMA CGM group leveraged its financial strength to pursue its strategy of investing in its shipping, port, logistics and air freight capabilities, while maintaining its commitment to the energy transition.” 

The group has pledged €1.5bn over five years for an energy fund to support its energy transition across maritime, land and air.