Strong recovery for Lufthansa Cargo
Lufthansa Cargo saw its operating result improve last year by more than a quarter (26.6%) to 100 million euro. The German freight carrier was again more successful than its big European rival Air France-KLM Cargo, which last year suffered an appreciable loss of 212 million euro.
The German freight carrier was able to improve its result considerably with virtually the same turnover of 2.4 billion euro and loading percentage (69.7%). The freight volume even fell by 2.7% and came out at 1.66 million tons.
Lufthansa was able to improve its profit considerably due mainly to paying close attention to its total costs (2.4 billion euro). These fell last year by 2% by almost 50 million euro. It also benefitted from the lower fuel costs (-15% to 450 million euro), extra income from freight handling (6%), lower prices for the hire of freight charters and less maintenance (-5.5%). These windfalls amply compensated for the higher depreciation costs for the freight fleet (137% to 64 million euro) and the negative foreign currency effects. Personnel costs (4,657 employees) meanwhile remained the same as those of 2013 at 387 million euro.
The freight division of Lufthansa at 2.4 billion euro accounts for around 8% of the total turnover and is hence the biggest business unit after the passenger division. Freight activities last year consisted of a freight fleet of sixteen MD11Fs and four B777-200Fs. These freight aircraft supplied 40% of the total freight capacity. In addition Lufthansa Cargo sells the freight capacity on the passenger aircraft of the parent company and subsidiary Austrian Airlines. This belly freight accounts for 50% of the total freight space of the airline group. The other 10% is provided by road transport (3%) and the joint ventures (Aerologic with DHL) and freight charters.
Source: Nieuwsblad Transport, John Versleijen