English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Past no answer to Lufthansa future says CEO

FRANKFURT: The Lufthansa Group has reported revenues of €30.01 billion for 2014 and an operating profit of €954 million – up 36.5 percent from 2013. The company says the figure would have been €232 million higher if not for 15 days lost through pilot strikes.

The result was helped by a €364 million decline in fuel costs and a €351 million benefit from changes made to the group's aircraft and engine depreciation policy. However, 2014 net income fell 82.4 percent from €313 million to €55 million due to what Lufthansa describes as the drop in market value of "exchangeable notes for JetBlue shares and the adverse impact of the changes in the value of fuel price hedging options".

Lufthansa 1960s 2Reporting its results under German GAAP rules, the group acknowledges it had to transfer funds from its capital reserve in order to offset an overall loss of €732 million – a decision that has resulted in no shareholder dividend for 2014.

Commenting on the results Carsten Spohr, chairman and CEO of Deutsche Lufthansa AG said: "On the one hand, all the business segments of the Lufthansa group are profitable and, with an operating profit of almost €1 billion, we achieved our projection in a far-from-easy year. At the same time, though, with our high investments in modern aircraft and premium services, we simply have to further increase our operating profit."

This year, its 60th anniversary since a post-WW2 re-launch, Lufthansa expects an adjusted EBIT - earnings before interest, taxes and net of disposals and extraordinary items - of over €1.5 billion.

"Given the results that we achieved in our core business, we can no longer regard sticking to inherited uneconomic structures as an option for the future of the Lufthansa group," Spohr added.

The logistics segment - which includes Lufthansa Cargo and the belly capacity of Austrian Airlines - reported revenue of €2.4 billion in 2014, basically unchanged from the previous year, and an operating result of €100 million - up 26.6 percent from the previous 12 months. The airline carried 1.7 million tonnes, down 2.7 percent; revenue tonne-kilometres fell 1.4 percent to 8.6 billion and the load factor remained virtually unchanged at 69.7 percent.

Over the past five years Lufthansa Cargo has seen its cargo revenue and operating result decline from a high point in 2010 of €2.8 billion and €310 million respectively.

The company operates 16 MD11 freighters and five 777Fs – plus a 50 percent share in eight more 777Fs via its Aerologic joint-venture with DHL. The freighter fleet contributed 40.1 percent to last year's total Lufthansa cargo capacity while the passenger airline added a further 50.1 percent.

Lufthansa Cargo says it attaches "great importance" to its 'Global Partnership Programme' with 11 major logistics companies: Agility, Ceva, Dachser, DB Schenker, DHL Global Forwarding, Expeditors, Hellmann, Kühne+Nagel, Panalpina, UPS and UTi. Collectively, this group provides the airline with "around half" its annual cargo revenue.

In an apparently unrelated but coincident announcement, one of the partners - DB Schenker - has declared the sudden resignation of its CEO Thomas Lieb. He leaves the company at the end of March with no replacement in sight.

The rapid departure of Lieb follows a decision earlier this month by DB Schenker to settle a pending U.S. court case against three airlines for alleged cargo price-fixing. At the time it said it would continue a separate action in Germany against Lufthansa and 10 other airlines claiming damages and interest totaling US$2.25 billion.

Under Lieb's leadership the logistics company said it would pursue Lufthansa "on behalf of the German taxpayer" despite the airline's whistleblower immunity from an original European Commission cartel prosecution in 2010.

News

Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...
Written on 07/11/2017, 19:59
costa-rica-signs-biofuel-deal-with-klmAMSTERDAM: November 07, 2017. As delegates to the 2017 UN Climate Change Conference (COP 23) meet in Bonn this week, KLM and the government of Costa Rica...
Written on 06/11/2017, 02:27
qatar-airways-takes-cathay-pacific-stakeHONG KONG/DOHA: November 06, 2017. Qatar Airways is buying 9.6 percent of Cathay Pacific Airways (CX) for HK$5.16 billion (US$661 million). The shares...
Written on 03/11/2017, 15:09
slower-airfreight-growth-in-2018-says-iataGENEVA: November 01, 2017. IATA reports a 9.2 percent increase in flown freight in September 2017 compared to the same month last year as capacity rose...
Written on 01/11/2017, 19:42
heathrow-misery-must-end-say-forwardersLONDON: November 01, 2017. The head of the UK's freight forwarder association says his members "want action, not words" to resolve congestion at...
Written on 30/10/2017, 21:03
china-s-one-belt-one-road-gets-new-rail-linkBAKU, Azerbaijan: October 30, 2017. The Baku-Tbilisi-Kars (BTK) railway connecting Azerbaijan, Georgia and Turkey has opened following the completion of a...
Written on 29/10/2017, 19:47
dp-world-to-support-us-500-billion-saudi-projectRIYADH, Saudia Arabia: October 26, 2017. Speaking at the Future Investment Initiative this week, DP World chairman and CEO Sultan Ahmed Bin Sulayem...
Written on 27/10/2017, 20:40
deutsche-post-dhl-delivers-unity-symbol-ahead-of-climate-conferenceBONN: October 26, 2017. As the official logistics partner for the UN Climate Change Conference (COP23) in Bonn next month, Deutsche Post DHL has shipped a...
Written on 26/10/2017, 19:41
change-of-chairs-at-tiacaMIAMI: October 26, 2017. The Board of the International Air Cargo Association has appointed Jan de Rijk Logistics CEO Sebastiaan Scholte its new chairman...
Written on 26/10/2017, 16:06
amazon-to-launch-keyless-home-deliverySEATTLE: October 25, 2017. Amazon will launch its 'Amazon Key' home delivery service for Prime members in 37 U.S. cities on November 08 at a one-time cost...
Written on 25/10/2017, 20:52
delta-introduces-a350-capacity-as-pharma-growth-continuesATLANTA: October 25, 2017. Delta Air Lines is to launch its A350-900 aircraft on flights from Detroit to Tokyo-Narita on October 30 followed by services...
Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...
Written on 17/10/2017, 20:05
britain-should-remain-in-the-eu-says-oecdLONDON: October 17, 2017. In its latest survey of the UK economy the OECD says the positive impact on growth "would be significant should Britain remain...
Written on 15/10/2017, 19:28
africa-gdp-growth-of-3-7-percent-in-2018ABIDJAN, Côte d'Ivoire: October 12, 2017. According to a new forecast from the African Development Bank (ADB), the continent's GDP is expected to grow 3.0...

- powered by Quickchilli.com -