Lufthansa Cargo’s EBIT plunges 97.6% in 2015

The German cargo airline’s earnings before interest in tax totaled 3 million euros (U.S. $3.4 million) for the year, a 97.6 percent decline from 2014.    Lufthansa Cargo’s earnings before interest and tax (EBIT) totaled 3 million euros (U.S. $3.4 million) for 2015, a 97.6 percent decline from 2014, the German cargo airline said.
   Revenues for 2015 dropped 3.3 percent year-over-year to 2.4 billion euros.
   Lufthansa Cargo carried 1.6 million metric tons of cargo and mail during the year, a 2.3 percent decline from 2014.
   “After a strong first quarter, demand on the global air cargo markets weakened steadily,” Lufthansa Cargo said. “On top of this, there was turbulence in the Chinese market and a very strong U.S. dollar, which affected export-driven industries in the U.S. in particular.”
   In addition, the Vereinigung Cockpit pilots’ union and the Unabhängige Flugbegleiterorganisation cabin attendants’ union carried out strikes, which resulted in further reductions in transported cargo volumes and revenues, the cargo airline said.
   In order to counter the decline, Lufthansa is implementing a range of measures including further product innovations and a cost-cutting program. In order to cut costs, the Lufthansa Cargo Board initiated the C40 cost-cutting program during the fall of last year, which should reduce costs by at least 40 million euros by 2018. “The focus is on staff and service provider costs,” Lufthansa Cargo said.
   The cargo airline is also moving forward with initiatives from the Lufthansa Cargo 2020 future program, which includes partnerships with other airlines.
   “We have set the right course, and the first plants of Lufthansa Cargo 2020 are starting to bear fruit,” Lufthansa Cargo Chairman and CEO Peter Gerber said. “With our new Boeing 777Fs, we are flying more efficiently and saving more fuel than ever before in our company’s history. The cooperation with ANA has gotten off to a superb start and we will be working very closely with another strong airline, United Airlines, in the future. We are also marketing the cargo capacities of Eurowings long-haul flights, which makes our network even more appealing.”