Lufthansa Cargo had a difficult year 2016

Decline of average revenue turned a negative effect to the results of Europe’s leading freight airline

Lufthansa Cargo had a difficult year 2016

2016 had been a turbulent year for Lufthansa Cargo AG. The company reported an adjusted EBIT for 2016 of EUR - 50 million (previous year: EUR + 74 million). This equals an adjusted EBIT margin of -2.4 percent (previous year:  3.1 percent). Turnover in the business segment of logistics dropped 11.5 percent to EUR 2.1 billion, as the Lufthansa Group announced at its press conference for the annual balance, in Munich.

Against this background, Lufthansa Cargo intends to reduce its annual direct costs for staff and the costs related to staff by at least EUR 80 million until 2018. They developed a strategic cost reduction program, which is being implemented since the autumn of 2016. Therefore, the sales division and other divisions were streamlined since early 2017. 

In 2016 sales of Lufthansa Cargo rose by 0.3 percent. The payload factor increased by 0.5 percentage points to 66.8 percent.  The available freighter capacity declined by 1.9 percent, whereas the sold capacity rose by 2.1 percent. The payload factor if cargo aircraft increased by 2.8 percentage points year-on-year, to 72.9 percent.

Lufthansa Cargo is the logistics division oft he Lufthansa Group. The company’s own fleet consisted of five Boeing 777F cargo aircraft and 14 Boeing MD-11F by the end of the financial year, with two of them being temporarily immobilised.