Lufthansa Cargo Earns Record Profit

Lufthansa Cargo Earns Record Profit

Lufthansa Cargo swung to a record operating profit of $434 million in 2010 from a year earlier loss of $239 million driven by the global economic recovery, booming German exports and cost cuts.

The German carrier boosted revenue more than 43 percent to $3.9 billion from $2.73 billion in 2009.

Cargo volume increased 18.2 percent to 1.8 million metric tons from 1.5 million tons.

Freight revenue was up 19.9 percent on a 7.6 percent increase in capacity and the load factor improved by 7.6 percentage points to 70.9 percent.

Lufthansa said the "impressive about-turn" resulted from strong growth in the Asia/Pacific market which accounts for just over 50 percent of its revenue.

The Americas region, which contributes almost 34 percent of revenue, also registered a significant revival in demand and volume of freight rose even faster than in Asia.

The 2010 profit beat the $230 million profit booked in the boom of 2008, but revenue fell $100 million short of that year's $4 billion.

Lufthansa Cargo said it is optimistic over demand in 2011 and expects a "substantially positive" operating result for the whole year.

But it said a repeat of the record performance in 2010 is not expected as this was due largely to a catch up effect following the slump of 2009.

Lufthansa Cargo on March 16 announced an order for five 777 freighters that will join its fleet of 18 MD-11 freighters.

Parent company Lufthansa reported an operating profit of $1.2 billion and a net profit of $1.54 billion compared with a year earlier loss of $48 million.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.