Dual hub strategy pays off for Cargolux
In 2015, Cargolux carried 889,652 tonnes of freight on its global network, 7.4 per cent more than in 2014 with an average load factor stable at 65.9 per cent, even with a larger fleet and increased capacity.
March 23, 2016
By Donald Urquhart
The Cargolux Group has ended the financial year (and 45th anniversary year) defying an environment of low yields, continued overcapacity and declining volumes, with record levels of tonnage, block hours and crucially, a net profit after tax of US$49 million. The company outperformed not only the market, but also its direct competitors in Europe who, in a number of cases, retired freighters or reduced their air cargo activities.
“It is a sign of our company’s strength that, despite the energy we needed to achieve a CWA [collective work agreement with labour unions] compromise, we managed to achieve a significant boost in our performance and a healthy profit, contrary to most of our European competitors,” says Dirk Reich, Cargolux president & CEO.
“While this excellent result benefitted from a reduction in fuel costs, it is in large part due to the hard work of our people, as well as our strategy and the corresponding measures that we began to introduce in 2014 in order to reduce our costs.”
This past year saw Cargolux push a number of strategic initiatives, including the launch of a speciality product portfolio. As a significant boost of its customer orientation, the new product portfolio continues to build on Cargolux’s existing core competency, pushing global consistency and leveraging on the evolution of its global presence. In doing so, the company increased the share of specialised products in its portfolio, further focusing on industry-specific needs by thinking beyond the flight and responding to the requirements of customers with the expansion of door-to-door service across China.