LOT Cargo invests in revenue and pricing intelligence

LOT Cargo invests in revenue and pricing intelligence

  • LOT Cargo embraces AI-powered revenue optimisation by partnering with RTS introduces Velocity, AcceleRate, and Foresight to enhance pricing, forecasting, and network planning. 
  • Positioning Warsaw as a cargo hub as LOT’s investment aligns with Poland’s growing role in Central and Eastern Europe’s logistics network, with volumes up 6.8 percent in 2024. 
  •  Strategic response to volatility with AI adoption aims to counter global market turbulence, yield compression, and sustainability compliance pressures under EU Fit for 55 and CBAM. 
  • Dallas-based RTS strengthens its presence in Europe as demand for analytics-driven cargo management accelerates.  LOT’s move reflects how private-sector innovation supports EU trade resilience, environmental goals, and air cargo modernisation initiatives. 

LOT Cargo, the freight division of LOT Polish Airlines, is doubling down on digital transformation to enhance its resilience in one of the most competitive cargo markets in the world. In a move that underscores the growing role of technology in cargo economics, the Warsaw-based airline has announced a partnership with Dallas-headquartered Revenue Technology Services (RTS) to implement a full suite of AI-powered solutions, including Velocity for revenue management, AcceleRate for dynamic pricing, and Foresight for sales planning and forecasting. 

This investment marks a turning point for LOT Cargo, positioning it to compete with larger global carriers while reinforcing Poland’s emerging role as a logistics hub in Central and Eastern Europe. With global trade flows shifting amid geopolitical tension, regulatory reform, and sustainability demands, LOT’s bet on AI reflects a broader industry consensus: future profitability and competitiveness will hinge on operational agility and commercial intelligence. 

“Partnering with RTS is fully aligned with our long-term strategy to combine innovation with sustainable growth,” said Michał Grochowski, Head of Cargo at LOT Cargo. “By leveraging AI-driven solutions, we are strengthening our ability to respond to market dynamics, enhance decision-making, and ensure that LOT Cargo remains a trusted partner for our global customers.” 

A market in flux: why LOT is moving now 

Air cargo markets have entered a period of heightened volatility. According to the International Air Transport Association (IATA), global air cargo volumes fell 1.9 percent in 2024, following capacity shifts on Asia-Europe routes, supply chain disruptions from geopolitical conflicts, and fluctuations in energy prices. Meanwhile, Europe’s carriers continue to face competitive pressure from Gulf and Asian hubs, compounded by regulatory changes tied to decarbonisation measures such as the EU’s Fit for 55 package and Carbon Border Adjustment Mechanism (CBAM). 

Against this backdrop, Warsaw offers strategic potential. Poland’s central location makes it a natural bridge between Western Europe, Asia, and the Baltics, while nearshoring trends and growth in regional manufacturing have increased demand for time-sensitive cargo flows. According to Eurostat, Poland’s air cargo volumes grew 6.8 percent in 2024, while Warsaw Chopin Airport processed over 95,000 tonnes of freight, positioning the city as a rising hub in Central and Eastern Europe. 

LOT Cargo’s embrace of AI solutions is a bid to capitalise on this momentum. The Velocity platform enables real-time scenario modelling, allowing LOT to adjust pricing and inventory allocation based on demand fluctuations, while AcceleRate delivers dynamic pricing to improve margins in a market experiencing yield compression. 

“By implementing Revenue Management, we expect to see significant improvements across our sales and operations,” said Łukasz Kachaniuk, Head of Sales, LOT Cargo. “Enhanced forecasting accuracy will allow us to better anticipate demand and optimise capacity. This, in turn, will improve responsiveness to market changes, ensuring our customers receive timely and reliable service.” 

Technology as a competitive differentiator 

LOT Cargo’s shift towards digitalisation reflects a trend already embraced by major European carriers such as Lufthansa Cargo, Air France-KLM, and Cargolux, which have invested heavily in predictive analytics and automation to safeguard margins in a low-yield environment. 

With cargo accounting for approximately 35 percent of total airline revenue globally, investments in pricing and capacity optimisation are no longer optional but necessary to sustain growth. Industry experts note that the adoption of AI-driven tools offers three key advantages: 

  • Yield Management: AI enables precise segmentation of customers and commodities, allowing carriers to optimise rates and maximise load factors, especially for bellyhold operations. 
  • Network Planning: Predictive modelling improves decision-making on route profitability, aircraft utilisation, and freighter deployment. 
  • Sustainability Compliance: AI-driven route planning and load optimisation reduce fuel burn, aligning carriers with the EU’s decarbonisation agenda and CORSIA obligations. 

“LOT’s decision to adopt RTS’s technology is a sign of maturity,” said a European aviation consultant. “As e-commerce, pharmaceuticals, and express freight continue to drive growth, precision pricing and data-driven decision-making will become the industry standard.” 

 RTS’s growing role in airline digitalisation 

With over 15 years of experience in aviation analytics, RTS has established itself as a partner of choice for both passenger and cargo carriers navigating complex market conditions. The company’s presence extends across North America, Europe, Asia, and Africa, providing LOT with a platform to integrate tactical execution with long-term strategic planning. 

“This partnership is about empowering LOT with tools that create real commercial agility,” said Johan van Rensburg, Vice President of RTS. “By bringing together RTS’s AI-driven solutions with LOT’s global ambitions, we’re building the foundation for sustainable growth and long-term success.” 

RTS’s Foresight solution will support LOT’s budgeting, sales planning, and network strategies, helping the airline respond to changing cargo demand patterns as global trade flows become more regionalised. 

Policy context: digitalisation as a growth lever 

LOT Cargo’s investment aligns with broader EU policy goals to modernise air freight and integrate logistics into the European Green Deal framework. The European Commission’s Sustainable and Smart Mobility Strategy emphasises digitalisation, multimodal freight corridors, and greater efficiency in customs processes. 

Poland, as part of the EU’s trans-European transport network (TEN-T), has benefited from increased investment in road, rail, and air freight infrastructure, positioning LOT to capture greater market share. The airline’s adoption of AI-based revenue management aligns with national efforts to grow Warsaw as a regional logistics hub, supported by rising e-commerce activity and investments in cargo terminals. 

“Airlines are increasingly looking for holistic solutions that enable agility across pricing, planning, and forecasting,” said Mukundh Parthasarathy, Senior Vice President at RTS. “Our work with LOT demonstrates how decision intelligence can deliver measurable commercial gains in highly competitive environments.” 

Picture of Ajinkya Gurav

Ajinkya Gurav

With a passion for aviation, Ajinkya Gurav graduated from De Montford University with a Master’s degree in Air Transport Management. Over the past decade, he has written insightful analysis and captivating coverage around passenger and cargo operations. Gurav joined Air Cargo Week as its Regional Representative in 2024. Got news or comment to share? Contact ajinkya.gurav@aircargoweek.com

subscribe to acw for free
stay informed. stay ahead

To get the latest air cargo news and industry trends delivered directly to your inbox, subscribe now!

Newsletter

Stay informed. Stay ahead. To get the latest air cargo news and industry trends delivered directly to your inbox, sign up now!

related articles

UK’s internationally trading SMEs expect sales to rise this holiday season

DHL Global Forwarding names Henk Venema as EVP Global Airfreight

IndiGo approves $820M funding to boost aircraft ownership