Lufthansa Cargo reports record performance in Q1

Lufthansa’s cargo business continued to report record performance in the first quarter of the year as it benefitted from additional capacity and higher rates.

The Germany-based airline’s logistics division, which includes Lufthansa Cargo, Jettainer, and its investment in AeroLogic, saw first quarter revenues reach a record for the period of €1.2bn – an increase of 46% compared with last year. Earnings before interest and tax (ebit) for the period improved by 52% on last year to €481m.

The division’s operational results also improved, with volumes in revenue tonne kms climbing by 7% to 1.8bn and capacity was up by the higher amount of 18% to 2.6bn available cargo tonne kms as passenger flying was ramped up.

However, supply outstripping demand meant that the average cargo load factor for the first quarter slipped by 7.2 percentage points to 68.8%.

“The performance of the Logistics segment is still at a record high.” Lufthansa said. “Total market freight capacity continues to be down as a result of the coronavirus pandemic and the consequent absence of belly capacities on passenger aircraft.

“Demand for the remaining freight capacities remains very high; operating stability has been maintained despite a difficult operating environment, which included lockdowns in China and the southerly bypass of Russia.”

Yields, the company said, continued to climb to “unprecedented heights”.

Meanwhile, the overall Lufthansa Group’s results improved in the first quarter, although rising fuel costs held back the recovery of its passenger airline business during the first three months of the year.

The German airline group reported an overall first-quarter net loss of €584m, compared with a €1.05bn net loss in the same period a year ago.

2021 revenues increased by 38% year on year to €3.8bn.

Damian Brett www.aircargonews.net & Lufthansa Group