Cargolux profits grow despite weaker global demand

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Cargolux Airlines International has managed to increase post-tax profits for the second year running despite a backdrop of global softening in market demand.

Net profit after tax reached $211.2 million in 2018, up from $122.3 million in 2017 despite demand falling in the second half of 2018, a shorter peak period compared to 2017, trade war uncertainty, geopolitical unrest and Brexit.

Increased demand came with positive yields. Block hours rose 3% to 138,179 and FTK totalled 8,409 million and available tonne kilometres grew to 12,375 million, resulting in load factors of 67.9%.

Richard Forson, president and CEO of Cargolux says: “Cargolux achieved exceptional financial results in 2018 despite slower economic growth in the second half of the year. Strong focus on the management of our capacity and yields, increased demand for specialised shipments, a record year for our charter division and the diversification into offering ACMI solutions all contributed to the performance achieved. Our employees demonstrated once again that hard work, dedication, and expertise are at the heart of our company’s success and sustainability.”

In 2018, Cargolux went on a journey of transformation with IT systems being overhauled to streamline processes, synergise teams internally and enhance customer experience.