Lufthansa Cargo more than doubled its first quarter operating profit, setting up a sixth consecutive year in the black in the face of a weak global air freight market that has pulverised the finances of its European rivals.
ANA Holdings and Japan Airlines posted mixed earnings results in the fiscal year ended March 31, even as the two biggest Japanese air carriers saw their international cargo revenues soar.
Air France-KLM Cargo remains mired in the red with the first-quarter operating loss almost doubling to 63 million euros ($70.6 million) from 34 million euros a year ago as the carrier rushes to downsize its unprofitable freighter operations.
IAG Cargo posted lower revenue and reduced volumes in the first quarter as the carrier continued to feel the impact of its exit from freighter operations.
Cargolux’s net profit was squeezed to $3 million in 2014 from $8.4 million in 2013 by a $40 million impairment on its 747-400 freighter fleet and a provision for potential anti-trust fines.
Lufthansa Cargo says it is delaying the construction of a new freight center at its Frankfurt hub “by at least two years.”
As the U.S. economy came screeching to a halt in the first quarter — at least those parts that contribute to gross domestic product growth — UPS improved revenue, shipment volumes and profit, a sign that things may not be as bad as the economic indicators seem to say.
The acquisition of French logistics giant Norbert Dentressangle will create new global opportunities for XPO, boosting its annual revenue to $8.5 billion.
TNT Express posted an operating loss and shrunken comparable revenue in the first quarter, warning that it faced tough times in the run-up to its planned acquisition by larger U.S. rival FedEx in 2016.
The bull run enjoyed by Asian air cargo since the last quarter of 2014 could not last forever, and after a robust first two months of the year, sharply slowing demand in March brought the business back to Earth with a bump.