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

Lufthansa Cargo – trying to profit from the cost of quality

FRANKFURT: August 04, 2016. Lufthansa Cargo, the logistics arm of the Lufthansa Group, expects a loss on Adjusted EBIT for 2016 after a 19.5 percent drop in net traffic revenue to €939 million for the first six months (H1) and an Adjusted EBIT loss of €45 million.

The company cited continued overcapacity, particularly from "the Gulf and Bosporus region", as having a "highly adverse" impact on revenue as yields fell to levels last seen during the financial crisis in 2009.

During HI, European sales increased 3.6 per cent, yields fell 15.1 percent, and traffic revenue dropped 12.0 percent. In the Americas sales were down 7.2 percent, yields sank 17.2 percent and traffic revenue dropped by 23.1 per cent.

LH A320neoSales in Asia/Pacific - where Lufthansa Cargo now has a "close bilateral cooperation" with Cathay Pacific Cargo in addition to ANA - rose 1.8 percent but yields dropped 18.0 percent and traffic revenue fell 16.4 per cent.

Given the acknowledged overcapacity, the company saw sales in the MENA region fall 8.6 percent, yields drop 14.7 per cent, and traffic revenue a significant 22.4 percent during H1.

In response, Lufthansa Cargo said it would continue with an €80 million reduction in staff and supplier costs that will result in "leaner processes and a modern, flexible infrastructure"; new services including an air cargo product for individuals called 'my AirCargo'; more airline partnerships; and "drive forward digitalization along the entire logistics chain".

The company provisionally retired two MD-11F freighters at the end of 2015 and now operates five B777Fs and twelve MD-11s.

Lufthansa Group H1 Adjusted EBIT rose 13 percent to €529 million as revenue fell 2.1 percent to €15.04 billion. Net profit fell 55 percent to €529 million during the period, due mainly to a one-off benefit of €503 million in 2015 from the early realization of a Jet Blue convertible bond.

Chairman and CEO Carsten Spohr said that while the group achieved a "solid result" for the first six months of 2016, he warned of a difficult second half of the year: "The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes. The forward bookings, in particular for our long-haul services to Europe have declined significantly. We expect the high pricing pressure to continue.

"In view of this, and as we recently announced, we expect to report an Adjusted EBIT for the full year which is below the previous year's. This is why we will push on our efficiency increases even more consistently," he declared.

News

Written on 21/06/2017, 22:44
more-disasters-but-less-moneyGENEVA: June 21, 2017. The United Nations says it needs US$23.5 billion in 2017 to provide humanitarian assistance to a record 141 million people in 37...
Written on 21/06/2017, 20:19
switzerland-remains-the-world-s-most-innovative-countryGENEVA: June 21, 2017 – Switzerland, Sweden, the Netherlands, U.S. and UK are the world's most- innovative countries according to a new report by produced...
Written on 21/06/2017, 16:53
fedex-and-ups-among-best-civic-minded-u-s-companiesSEATTLE: June 21, 2017. FedEx and UPS are among the 50 most community-minded companies in the United States according to the latest 'Civic 50' list from...
Written on 16/06/2017, 20:37
eu-commercial-drones-by-2019-says-commissionBRUSSELS: June 16, 2017. The European Commission says commercial drones flying in a 'U-Space' under 150 meters from the ground will be operate in the EU...
Written on 16/06/2017, 19:00
collaboration-and-compromise-key-to-uk-trade-futurePARIS: June 15, 2017. The OECD is forecasting a 1.7 percent rise in UK GDP this year and just 1.0 percent in 2018 as uncertainty rises of Britain not...
Written on 16/06/2017, 15:01
amazon-to-buy-bricks-and-mortar-grocer-for-us-13-7-billionSEATTLE: June 16, 2017. Amazon has agreed to buy Texas-based Whole Foods Market (WFM) for US$13.7 billion including debt. WFM reported Q2 2017 net sales...
Written on 15/06/2017, 20:35
amazon-to-sell-cars-in-britain-delivered-by-emirates-skycargoLONDON: June 14, 2017. Amazon is hiring automotive experts as a prelude to selling cars in the UK according to eCommerce delivery company Parcel...
Written on 12/06/2017, 16:13
qatar-airways-adds-dublin-as-profits-riseDOHA, Qatar: June 12, 2017. Despite continued uncertainty in Qatar following political and economic sanctions imposed by neighboring GCC countries, Qatar...
Written on 09/06/2017, 16:35
spanish-port-strike-continuesBARCELONA: June 09, 2017. Some 6,000 Spanish dockworkers are expected to continue their strike action until June 24 unless a meeting between their union...
Written on 07/06/2017, 01:08
we-are-still-in-say-u-s-states-and-businessesWASHINGTON, DC: June 05, 2017. Ignoring Donald Trump, 1,219 governors, mayors, businesses, investors, colleges and universities in the U.S. have declared...
Written on 06/06/2017, 19:35
iata-repeats-call-for-trade-freedomCANCUN, Mexico: June 06, 2017. IATA's 73rd annual general meeting has called on governments to implement the World Trade Organization's (WTO) Trade...
Written on 05/06/2017, 20:34
qatar-cargo-to-operate-perishables-airliftDOHA: June 05, 2017. The Qatar Cargo weekly A330 freighter service to London Heathrow that began on June 03 could be part of a food airlift if the Saudia...
Written on 01/06/2017, 20:52
u-s-not-so-competitiveLAUSANNE, Switzerland: May 31, 2017. The United States is no longer one of the top three competitive countries in the world according to a new 63-country...
Written on 01/06/2017, 18:57
rickmers-group-files-insolvency-following-bank-moveHAMBURG: June 01, 2017. The Rickmers Group has declared insolvency following the rejection by HSH Nordbank of a proposed financial restructuring. Last...
Written on 01/06/2017, 14:07
exxon-mobil-low-carbon-future-as-trump-pulls-climate-plugBOSTON, MA: June 01, 2017. As expected, Donald Trump has announced the United States is withdrawing from the Paris Agreement on climate change, despite...
Written on 26/05/2017, 16:16
powerful-future-ahead-for-madagascarPORT LOUIS, Mauritius. May 24, 2017. Volga-Dnepr Airlines has now completed a series of flights begun in March to deliver power generators from Mauritius...
Written on 25/05/2017, 20:07
rhinos-return-to-rwandaAKAGERA, Rwanda: May 25, 2017. Ten years after the Eastern black rhino disappeared from Rwanda following decades of poaching, 19 animals have now taken up...
Written on 25/05/2017, 18:33
port-everglades-gets-expansion-go-aheadPORT EVERGLADES, FL: May 24, 2017. Port Everglades is to invest US$437.5 million to add new berths for larger cargo vessels and install crane rail...
Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...

- powered by Quickchilli.com -