Lufthansa remains optimistic with two freighter deliveries in 2013

LUFTHANSA Cargo has been reaping the rewards of its swift decision to reduce capacity ahead of its rivals in early 2011, with the carrier set to record a profit for the third year in a row.

Despite gloomy projections of slowdowns in the US, Japanese and German air freight markets and Europe expected to remain flat, the air cargo carrier is confident it can grow by 2.5 to three per cent in 2013 as China is anticipated to pick up steam.

According to executive board member of product and sales, Andreas Otto, the airline's two grounded MD-11 freighters will be restored to scheduled service as soon as the market recovers. He said he was looking forward to the arrival of two new Boeing 777s next year.

But should the market fail to recover, Mr Otto said "weaker aircraft", including an MD-11 converted from passenger configuration, would be grounded. "We would prefer to use our higher capacity, but we need stable markets to deploy it all," reported Air Cargo World.

Lufthansa Cargo achieved an operating profit of EUR66 million (US$85.6 million) in the first three quarters of 2012. This year will result in a weaker performance than that achieved in 2010 and 2011. But Mr Otto said the company is in better shape than Air France-KLM Cargo, Cargolux and Singapore Airlines Cargo.

Commenting on SIA, Mr Otto said: "Asia is the most promising region, but you need freighters. They ordered them based on fantastic success stories, but one of the best-managed airlines in the world is in serious trouble for the second year in a row."

Mr Otto also said the night flight ban at its hub at Frankfurt was hurting its bottom line by up to EUR40 million per year. "In an increasingly difficult environment it's not helping us at all. I'm surprised our government is not looking after us," he said.

Lufthansa shareholders have committed EUR1 billion to the implementation of e-cargo and to further development of Frankfurt. Pharmaceutical growth was close to 13 per cent following the opening of a new temperature-controlled facility at the airport, and Mr Otto vowed the company would make further investments.