Cargolux profit surges, revenue shrinks

Cargolux profit surges, revenue shrinks

Cargolux’s net profit surged in 2015, helped by cheaper fuel, but revenue shrank as low yields offset higher volumes.

Europe’s largest all-cargo carrier boosted post-tax profit to $49 million from $3 million in 2014, but revenue fell 13.6 percent to $1.86 billion from $2.15 billion.

“The company outperformed not only the market, but also its direct competitors in Europe, who in some cases, retired freighters or reduced their air cargo activities,” the Luxembourg-based carrier said.

Cargolux transported 889,652 tonnes (980,673 tons) of freight in 2015, up 8.7 percent on the previous year, and its fleet of twenty-five 747-400 and 747-8 freighters flew a record 114,792 block hours, an increase of 8.8 percent on the all-time high in 2014.

The average load factor stabilized at 65.9 percent even as Cargolux boosted its fleet by four 747-8s during the year.

Cargolux said Zhengzhou airport was a major focus in 2015 with traffic to and from its new Chinese hub totalling 65,000 tonnes by the end of the year, with 13 weekly flights including a trans-Pacific service to Chicago.

Earlier this year, Cargolux announced a $77 million investment in Cargolux China a new joint venture with China’s HNCA, in which it has a 35 percent stake.

Cargolux China is scheduled to start operations in 2017, focusing on trans-Pacific and intra-Asia routes with a fleet of five 747 freighters within three years.

Contact Bruce Barnard at brucebarnard47@hotmail.com.