Lufthansa Cargo Tumbles

Lufthansa Cargo's freight traffic slumped 19.9 percent in March from a year ago, led by even steeper declines on routes to North and South America.

But even as it braces for further falls through 2009, the German carrier has just launched freighter services to India and Vietnam.

Lufthansa's traffic fell to 123,000 tonnes from 154,000 tonnes in March 2008, leaving shipments in the first three months of the year 23.4 per cent lower at 328,000 tonnes.

The decline outpaced a 4.7 percent cut in capacity, mostly freighter flights, resulting in an 11.4 points drop in the load factor, or capacity utilization, to 57.6 percent.

Lufthansa group freight traffic, including Swiss World Cargo, fell 19.6 percent last month to 140,000 tonnes and was 22.7 percent lower in the first quarter at 375,000 tonnes.

The Americas network reported traffic down 25.9 percent at 38,000 tonnes, while Asia/Pacific shipments fell 14.7 percent, also to 38,000 tonnes.

Lufthansa has idled four of its 19 MD-11 freighters, cut hours for 2,600 ground workers, frozen recruitment and trimmed budgets in response to falling demand.

But it has just launched a weekly freighter service between Frankfurt and Hanoi, Vietnam, and a weekly two way MD-11 flight to Hyderabad, India.

On April 15, Jade Cargo International, Lufthansa's Chinese joint venture, will begin scheduled freighter services for the first time between China, India and Africa. The twice weekly flights from Shanghai will be routed through Shenzhen to Chennai and then via Sharjah, United Arab Emirates, to Lagos, Nigeria.

"In the present difficult economic environment Lufthansa Cargo is making the most of market opportunities," said the carrier's chairman Carsten Spohr.