Lufthansa Cargo Q22024 revenue up 12% on higher rates
Revenue cargo tonne kilometres increased 17% to 2.5 billion, cargo load factor increased 0.4 percentage points to 56.8%.
Lufthansa Cargo reported a 12 percent increase in revenue at €799 million for the second quarter of 2024 on higher yields and increasing volumes.
Adjusted EBIT dropped three percent to €37 million with adjusted EBIT margin at 4.5 percent compared to 5.2 percent in the same period last year, says an official release.
"Cargo profits on same level as prior year – market normalisation continuing, with yields staying on a high level and volumes slightly up," Carsten Spohr, CEO, Lufthansa Group and Michael Niggemann, Interim-CFO said in an analysts presentation after announcing the results.
Revenue cargo tonne kilometres increased 17 percent to 2.5 billion as against a 17 percent increase in available cargo tonne kilometres at 4.5 billion. Cargo load factor increased 0.4 percentage points to 56.8 percent.
For the first half of 2024, revenue declined three percent to €1.5 billion, and adjusted EBIT dropped 93 percent to €14 million from €188 million.
Revenue cargo tonne kilometres increased 14 percent to 4.8 billion as against a 14 percent increase in available cargo tonne kilometres at 8.3 billion.
Total revenue up six percent
The Lufthansa Group reported a six percent increase in revenue at €17.4 billion with a net loss of €265 million in the first half of 2024.
“Flying has lost none of its fascination – global demand for air travel remains strong," says Spohr. "As a result, we exceeded the 10 billion euros turnover mark for the first time in the second quarter. However, due to the increase in available seat capacity, the normalisation of air fares and average yields continued in all markets worldwide in the first half of the year. In view of the simultaneous rise in costs, profit expectations had to be adjusted across the industry – and also for us.
"Our most important airline, Lufthansa, was particularly affected in the first half of the year. This is because, in addition to the effects of market developments, there were special effects such as the high strike costs, further delays in aircraft deliveries and the resulting inefficiencies, as well as structural problems of the airline.
"It is particularly pleasing that in the current challenging environment, all the other passenger airlines in the Group, as well as Lufthansa Cargo, remain on course in line with market developments. Lufthansa Technik even posted another record result in the first half of the year."
Outlook
The Lufthansa Group expects revenue growth to be more than offset by ongoing cost increases and the effects of the strikes in the first quarter and for earnings to therefore decline relative to the previous year.
"Overall, for the 2024 financial year, the Lufthansa Group predicts adjusted EBIT of between €1.4 billion and €1.8 billion; this outlook is largely dependent on the earnings trend for Lufthansa Airlines as well as the traditionally important fourth quarter at Lufthansa Cargo."
