As global trade patterns shift, digitalisation accelerates, and sustainability pressures mount, airlines are reassessing their strategies to remain competitive. 

But in an increasingly competitive environment, can European carriers keep pace with the rise of Middle Eastern and Asian cargo hubs?

Global air cargo demand has been in flux since the pandemic, with new trade corridors emerging and geopolitical uncertainties reshaping supply chains. While Asia-to-Europe routes remain a dominant force, new markets like India and Vietnam are growing rapidly, requiring airlines to adapt their networks.

“Trade is becoming more diverse, and airfreight markets are evolving,” said Lufthansa Cargo.

 “We see strong growth in Southeast Asia, and to remain competitive, European cargo hubs must ensure they are well-positioned to handle these shifts efficiently.”

This diversification is reflected in Lufthansa Cargo’s 29 percent increase in freighter capacity to Asia during the last peak season, with new stations added in Shenzhen and Zhengzhou to support the e-commerce boom. However, the question remains—will Europe continue to lead global air cargo, or is it at risk of losing its stronghold?

e-commerce revolution

The rise of e-commerce-driven air freight has been one of the most significant shifts in recent years. The need for rapid delivery times has increased demand for dedicated freighter capacity, particularly from Asia.

Airlines must adapt to the fast-paced nature of e-commerce logistics, ensuring long-term capacity commitments and flexible charter options. However, with passenger flights returning to full capacity, the balance between freighters and belly cargo remains a delicate challenge.

“We’re seeing increased demand for long-term capacity commitments, particularly from e-commerce customers,” Lufthansa Cargo’s representative added.

“Adjusting our freighter network accordingly is essential to maintaining efficiency.”

While dedicated freighters offer greater control over cargo operations, belly capacity remains a crucial part of European carriers’ strategies. 

However, the industry is facing yield pressures, with Lufthansa Cargo reporting only a 3 percent increase in cargo yield in 2024, a sign that post-pandemic peak freight rates are now stabilising.

AI and automation

European cargo hubs have long been criticised for inefficiencies, particularly in handling times and operational bottlenecks, addressing this by embracing automation and AI, positioning itself at the forefront of digital transformation in air cargo.

A pilot project launched in the autumn of 2024 saw autonomous tow vehicles (AGVs) introduced in Frankfurt, transporting freight between buildings without human intervention. Meanwhile, AI-driven automation has reduced response times in Lufthansa Cargo’s customer service centres, with 40 percent of inquiries now handled automatically.

“Automation and AI are not just about efficiency—they are about resilience.” 

“As the industry faces a growing skills shortage, digitalisation will play a key role in ensuring smooth operations and reducing delays.”

Additionally, Lufthansa Cargo is supporting the push towards IATA’s ONE Record initiative, which aims to create a standardised, open data-sharing framework for air freight. If fully implemented, such initiatives could revolutionise cargo visibility and tracking, eliminating inefficiencies caused by fragmented data systems.

Despite digitalisation and network expansion, the biggest challenge for European cargo carriers remains sustainability. With net-zero targets looming, airlines are under increasing pressure to reduce emissions and invest in cleaner technologies.

Lufthansa Cargo has committed to halving net CO2 emissions by 2030 and achieving full carbon neutrality by 2050. However, sustainable aviation fuel (SAF) adoption remains limited due to high costs and restricted availability.

“Our biggest CO2-saving potential lies in the air,” stated Lufthansa Cargo. 

“Sustainable aviation fuel and fleet modernisation are critical, but the reality is that the industry needs broader collaboration to make SAF scalable and commercially viable.”

xThe airline has already transitioned its entire freighter fleet to Boeing 777Fs, the most fuel-efficient aircraft in its category. It also has seven Boeing 777-8 freighters on order, which promise further emission reductions. However, with SAF still making up a small fraction of overall fuel use in aviation, sustainability remains one of the biggest hurdles for Europe’s air cargo industry.

Investing in the future

As European cargo hubs face rising competition from the Middle East and Asia, investment in infrastructure modernisation is seen as a key differentiator.

Lufthansa Cargo is investing €600 million into modernising its Frankfurt hub through the LCCevo project, aimed at boosting efficiency, reducing handling times, and expanding digital capabilities. The 330,000m² Lufthansa Cargo Center will undergo phased upgrades to minimise disruption while enhancing operational capabilities.

“In times of global tensions and shifting customer demands, we need innovative solutions that make our services faster, more seamless, and more competitive.” 

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