Higher yields help Lufthansa Cargo profits grow

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Lufthansa Cargo is continuing to have a strong year with profits up 43 per cent in the first nine months helped by higher yields.

Between January and September, earnings before interest and tax (EBIT) in Lufthansa’s Logistics sector, which includes Lufthansa Cargo increased 43 per cent to €150 million and was also up 19 per cent between July and September to €25 million.

Highlights for 2018 include launching its cooperation with United Airlines and taking over sales of Brussels Airlines, while two new Boeing 777 Freighters will join the fleet in spring 2019 and another one will go to Aerologic.

Revenue was up 12 per cent to €1.9 billion due to price increases in the first nine months and by 11 per cent in the third quarter to €659 million.

Available tonne kilometres rose by five per cent between January and September to 10 billion, with revenue tonne kilometres growing by one per cent to 6.6 billion, pushing load factors down 2.8 percentage points to 65.8 per cent.

For the Lufthansa Group, total revenue increased one per cent to €26.9 billion between January and September though net profit was down six per cent to €1.7 billion.

The nine month results were affected by a €536 million rise in fuel costs, costs due to flight delays and cancellations, and higher maintenance expenses.

Lufthansa chairman of the executive board and chief executive officer, Carsten Spohr says: “Had it not been for the losses at Eurowings, we would have posted another record earnings result. This is a clear testament to our sustainable financial strength – a strength that we have demonstrated even under challenging conditions this year.”