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Lufthansa Cargo's Q2 revenue soars and operating profit still in the black
LUFTHANSA's cargo and logistics division recorded improved revenues and operating profits in the second quarter of the year, helped by strong demand growth in its Asia Pacific business.
The German airline's logistics division, which includes Lufthansa Cargo, Jettainer, time:matters and an equity investment in AeroLogic, saw second-quarter revenues increase by 18.8 per cent year on year to EUR589 million (US$696 million), while earnings before interest and tax (ebit) improved to EUR51 million from a loss of EUR27 million last year.
It is the third quarter in a row the cargo division has reported an operating profit, after a run of five quarters of losses.
The logistics division saw its performance boosted by improving freight rates, a 4.2 per cent increase in traffic to 2.2 billion revenue cargo tonne km (RCTK), its load factor reached 67.9 per cent from 65.9 per cent last year and yields were up 10.3 per cent.
"Performance varied between regions. Capacity was expanded in the Americas and Asia/Pacific traffic regions," Lufthansa said.
"The cargo load factor improved in all regions, with the exception of the Middle East/Africa. Traffic revenue and yields were up in all regions".
Over the first half, its Europe business saw traffic decrease 1.4 per cent on a year earlier to 165 million RCTK, there was a 4.4 per cent increase for the Americas region to 1.8 billion RCTK, Asia Pacific was up 7.5 per cent to 2 billion RCTK and the Middle East Africa slipped 2.8 per cent to 285 million.
During the first half of the year, there was an increase in operating expenses, with fuel costs up by 37.9 per cent to EUR153 million and MRO expenses increasing 6.6 per cent to EUR67 million due to a new engine maintenance contract for B777Fs.
The results compare favourably with those of IAG and Air France KLM. IAG Cargo recorded a second quarter revenue increase of 7.9 per cent to EUR260 million, while Air France KLM was down slightly to EUR506 million, London's Air Cargo New reported.
The German airline's logistics division, which includes Lufthansa Cargo, Jettainer, time:matters and an equity investment in AeroLogic, saw second-quarter revenues increase by 18.8 per cent year on year to EUR589 million (US$696 million), while earnings before interest and tax (ebit) improved to EUR51 million from a loss of EUR27 million last year.
It is the third quarter in a row the cargo division has reported an operating profit, after a run of five quarters of losses.
The logistics division saw its performance boosted by improving freight rates, a 4.2 per cent increase in traffic to 2.2 billion revenue cargo tonne km (RCTK), its load factor reached 67.9 per cent from 65.9 per cent last year and yields were up 10.3 per cent.
"Performance varied between regions. Capacity was expanded in the Americas and Asia/Pacific traffic regions," Lufthansa said.
"The cargo load factor improved in all regions, with the exception of the Middle East/Africa. Traffic revenue and yields were up in all regions".
Over the first half, its Europe business saw traffic decrease 1.4 per cent on a year earlier to 165 million RCTK, there was a 4.4 per cent increase for the Americas region to 1.8 billion RCTK, Asia Pacific was up 7.5 per cent to 2 billion RCTK and the Middle East Africa slipped 2.8 per cent to 285 million.
During the first half of the year, there was an increase in operating expenses, with fuel costs up by 37.9 per cent to EUR153 million and MRO expenses increasing 6.6 per cent to EUR67 million due to a new engine maintenance contract for B777Fs.
The results compare favourably with those of IAG and Air France KLM. IAG Cargo recorded a second quarter revenue increase of 7.9 per cent to EUR260 million, while Air France KLM was down slightly to EUR506 million, London's Air Cargo New reported.
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