Lufthansa Cargo clocks new best in 2018 revenue and profits
March 19, 2019: Lufthansa Cargo saw revenue rise 7 percent year-on-year to over €2.7 billion in 2018.
The Frankfurt-based cargo airline saw profit up €5 million in 2018, compared to 2017. The company reported a profit of €268 million (adjusted EBIT).
With these results, the company reported its second best result in its history in 2018.
Compared to 2017, yield per transported tonne of air cargo was also up seven percent.
While the volume of goods transported saw a slight increase of 1 percent year-on-year, the cargo capacity offered rose 5.3 percent.
“We managed to increase our revenue per unit and lower our unit costs last year. We will use the profit to modernize our means of production, which will further enhance our cost efficiency," added Dr Martin Schmitt, Board Member for Finance and Human Resources.
Lufthansa Cargo will press ahead with its fleet modernization and will already sell the capacity of four brand-new Boeing 777 freighters this year. It also intends to gradually modernize the infrastructure at its logistics center in its Frankfurt hub.
"We will continue to systematically drive digitization along the entire transport chain. We are the first cargo airline in the world to offer our customers completely paperless booking and handling for standard cargo. With our new, fully digital PreCheck process, we will now significantly accelerate and simplify handling processes for our customers. And we will also continue to roll out the eDGD electronic dangerous goods declaration so that even more customers and shippers will be able to benefit from this digital solution," said Peter Gerber, CEO and chairman of the executive board of Lufthansa Cargo.
In terms of expectations, Gerber is essentially optimistic in his outlook: "The current year, unlike 2018, is again characterized by the weakness typical of the logistics market in the early months of the year. Given low global economic growth, this is currently being exacerbated by reports of Brexit and trade disputes. This means we will again face challenges in 2019, but we remain upbeat about the quarters ahead."