Lufthansa Cargo is implementing a comprehensive range of measures to counter the decline in its 2015 annual results.
Besides an ambitious cost-cutting programme, the airline has announced further product innovations. The company is also pressing ahead with initiatives from the Lufthansa Cargo 2020 future programme, including close partnerships with other airlines.
“We will still be operating in an extremely challenging market environment in the years ahead”, commented Lufthansa Cargo chairman and CEO Peter Gerber at the presentation of the 2015 annual results. “But we have a clear strategy that has been set up to facilitate sustainable and profitable growth again. With innovative products, superb service and competitive cost structures, we will make the most of the advantages offered by our Frankfurt base.”
In 2015, Lufthansa Cargo achieved an adjusted EBIT of e74m (down 40 per cent on the previous year). After a strong first quarter, demand on the global air cargo markets weakened steadily. On top of this, there was turbulence in the Chinese market and a very strong US dollar, which affected export-driven industries in the US in particular.
The numerous strikes of the Vereinigung Cockpit (VC) pilots’ union and Unabhängige Flugbegleiterorganisation (UFO) cabin attendants’ union led to further reductions in transported cargo volumes and revenues. With an impairment for the LCCneo project (with the construction of a new logistics centre in Frankfurt having been postponed in spring 2015 for two years initially), the EBIT (earnings before interest and taxes) fell even more considerably to e3m (2014: 123 million euros).
Gerber stressed that the company would stick with the Lufthansa Cargo 2020 future strategy in spite of the decline in profits: “We have set the right course, and the first plants of Lufthansa Cargo 2020 are starting to bear fruit”, he said. “With our new Boeing 777Fs, we are flying more efficiently and saving more fuel than ever before in our company’s history. The cooperation with ANA has gotten off to a superb start and we will be working very closely with another strong airline, United Airlines, in the future. We are also marketing the cargo capacities of Eurowings long-haul flights, which makes our network even more appealing.”
Gerber also emphasised the successful, global renewal of the IT landscape: “This has been an important requirement to getting us working efficiently and successfully. This step has also been a milestone in our efforts towards achieving a fully digitised air cargo business.”
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