Lufthansa to buy cargo terminal operator in Germany

Lufthansa Cargo, part of the Deutsche Lufthansa Group, has reached an agreement to acquire LUG air cargo handling GmbH, an airport service provider in Germany. The logistics company believes that efficient transfer operations are crucial to minimize ground delays for customers who demand swift freight service. LUG is responsible for cargo handling and distribution at Frankfurt, Munich, and Hamburg airports.

This acquisition will grant Lufthansa Cargo more capacity for managing its own shipments while also diversifying its revenue streams with businesses from other airlines that need ground handling services. The transaction is subject to regulatory and antitrust reviews. LUG will retain its independent status, and customers will not experience any changes in service quality.

Frank Bauer, Lufthansa Cargo's chief operating officer, stated that the company seeks to become more flexible, efficient, and resilient in a volatile market by making investments in its German infrastructure. LUG employs around 400 people and manages more than 538,000 square feet of warehouse space. The deal's terms have not been disclosed.

Lufthansa Cargo is currently ranked 14th globally in terms of traffic volume, according to the International Air Transport Association. The company operates 12 Boeing 777 freighter aircraft and manages capacity on six 777s operated by AeroLogic, a joint venture between Lufthansa and DHL Express. Lufthansa Cargo also manages belly capacity for sister airlines, including Lufthansa, Austrian Airlines, Brussels Airlines, Discover Airlines, and SunExpress.

The airline has focused on high-margin sectors like pharmaceuticals, semiconductors, automotive, and artificial intelligence, including modernizing its ground infrastructure. In addition to the LUG acquisition, Lufthansa Cargo is constructing a $682 million, 3.5 million square-foot cargo terminal at Frankfurt, featuring high bays and an automated transport system that will significantly enhance cargo handling capacity and efficiency.

Lufthansa Cargo's vertical integration includes the merger of heyworld, specializing in expedited cross-border shipping for e-commerce, and CB Customs Broker, forming GlobeCross GmbH. This integration provides a unified platform for e-commerce customers, offering faster, predictable, and fully compliant service in a complex trade environment.