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 11/12/2017, 18:20
deutsche-bahn-subsidiary-regrets-rastatt-rail-closureDUSSELDORF: December 11, 2017. Speaking at meeting of rail operators last week, DB Netz CEO Frank Sennhenn expressed regret for his company's involvement...
Written on 10/12/2017, 22:44
rolls-royce-to-test-remote-controlled-shippingPARIS: December 06, 2017. The European Space Agency (ESA) and Rolls-Royce have signed an MoU to investigate how space technology can be used to develop...
Written on 08/12/2017, 20:10
beijing-continues-to-cut-carbonNAIROBI: December 06, 2017. According to an Assessment Report on Beijing Capital Airport, released during the third UN Environment Assembly in Nairobi...
Written on 07/12/2017, 20:53
bollore-begins-rail-renovation-between-cote-d-ivoire-and-burkina-fasoABIDJAN, Côte d'Ivoire: December 04, 2017. SITARAIL, a Bolloré Transport & Logistics subsidiary, has begun upgrading the rail link between Abidjan and...
Written on 07/12/2017, 19:53
innovative-dry-bulk-handling-at-port-of-rigaRIGA, Latvia: December 06, 2017. The Baltic port of Riga says it has become the first in Europe to use containerized dry bulk handling technology. Rīgas...
Written on 06/12/2017, 21:57
azerbaijan-railways-gets-us-400-million-upgradeMANILA: December 06, 2017. The Asian Development Bank (ADB) is providing loans to Azerbaijan Railways totaling US$400 million to improve governance and...
Written on 03/12/2017, 22:36
amsterdam-to-get-china-rail-link-in-2018AMSTERDAM: November 29, 2017. Together with TMA Logistics, Austria's Rail Cargo Group and the Port of Amsterdam, Netherlands-based Nunner Logistics plans...
Written on 01/12/2017, 18:27
alibaba-launches-china-anti-poverty-campaignHANGZHOU: December 01, 2017. Alibaba Group executive chairman Jack Ma has established a US$1.5 billion 'Alibaba Poverty Relief Fund' by leveraging the...
Written on 29/11/2017, 19:46
dhl-adds-tesla-trucks-to-its-electric-fleetBONN: November 29, 2017. DHL Supply Chain has announced an order for 10 Tesla Electric Class 8 Semi tractors for delivery in 2019. The company said it...
Written on 28/11/2017, 21:50
netherlands-rail-operators-threatened-by-high-costsUTRECHT, Netherlands: November 28, 2017. RailGood, a Dutch alliance of 50 rail operators, logistics companies, inland terminals plus the German port of...
Written on 28/11/2017, 19:54
electric-powered-airbus-by-rolls-royce-and-siemensLONDON: November 28, 2017. Airbus, Rolls-Royce and Siemens are to develop and fly an hybrid-electric powered BAe-146 test aircraft by 2020 to determine...
Written on 27/11/2017, 21:04
rail-operators-want-compensation-for-rhine-valley-closureBRUSSELS: November 27, 2017. Three European rail freight associations want DB Netz, a subsidiary of Deutsche Bahn, to pay customers full compensation...
Written on 24/11/2017, 22:56
argentina-gdp-needs-aviation-investment-says-iataBUENOS AIRES: November 20, 2017. A report from Oxford Economics says Argentina could be a "regional powerhouse" if the government invested in the...
Written on 24/11/2017, 21:41
europe-top-in-attracting-business-talentLAUSANNE, Switzerland: November 20, 2017. A new study by the IMD business school says Switzerland, Denmark and Belgium are the best at attracting,...
Written on 21/11/2017, 21:21
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to collaborate in...
Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
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...

- powered by Quickchilli.com -