EUROPE & CIS: Lufthansa Cargo sees profi ts rise 20%
Lufthansa, EuropeÃ¢â‚¬™s second largest airline, reported a rise in cargo earnings of more than 20 per cent in 2008 from a year earlier, but warned of declining revenue and profit in 2009 as freight volumes continue to collapse amid theongoing global recession. Lufthansa CargoÃ¢â‚¬™s operating profit rose 20.6 per cent to Ã¢â€šÂ¬164 million year on […]
April 1, 2009
Lufthansa CargoÃ¢â‚¬™s operating profit rose 20.6 per cent to Ã¢â€šÂ¬164 million year on year as revenue gained 6.3 per cent to Ã¢â€šÂ¬2.9 billion.
The cargo divisionÃ¢â‚¬™s results come in the face of a severe industry downturn which saw a six per cent decline in cargo traffic to 1.7 million tonnes from 1.8 million tonnes in 2007, and represents the second best result since Lufthansa Cargo was established as an independent unit in 1994.
Ã¢â‚¬Å“The crisis has reached dimensions in our industry that are far beyond what we had experienced until now,Ã¢â‚¬Â Carsten Spohr said at the cargo divisionÃ¢â‚¬™s recent management conference. The first two months of the year saw volume declines of nearly 25 per cent, Spohr said.
In a bid to cope with the continual weakening of demand, Lufthansa has introduced shortened working hours for both pilots and ground crews in its cargo division, and cargo managers there have taken a voluntary 10 per cent pay cut.