Cargolux barely in the black for 2014

The airfreight carrier reported net profits of $3 million for the year on revenues of $2.1 billion in its yearly financial statements.    Cargolux Airlines International S.A. had a net profit of $3 million in the fiscal 2014 year despite a “difficult overall market situation,” according to the company’s yearly financial statements. Revenues at the Luxembourg-based all-cargo airline, on the other hand, increased 10.1 percent to $2.1 billion in 2014 compared to the previous year.
   The company attributed the weak profits to having to impair its B747-400 fleet by $40 million and providing for any potential anti-trust impact from various legal actions raised against the airline.    
   Cargolux increased its freight volumes 9.9 percent to 828,658 tons for the year. Freight ton kilometers grew 11.2 percent year-over-year to 6,364,260 FTKs and the airline’s loadfactor reached 66.9 percent in 2014.
   At the end of 2014, the Cargolux’s fleet included 11 747-8 freighters and 11 747-400 freighters, the largest in its history, and the airline had an estimated global market share of 3.7 percent.
   “While the industry continued to suffer from overcapacity and noticeable pressure on yields, Cargolux benefited from a very strong last quarter in 2014,” the airline said. “Combined with a rapidly declining oil price, the airline achieved record levels of block hours and tonnages while enjoying a welcome increase in yields.”
   These results came after the Henan Civil Aviation and Investment Co. purchased 35 percent of Cargolux of from the Grand Duchy of Luxembourg, which, in turn, purchased 8.32 percent of Cargolux shares from Luxair. Luxair remained the company’s largest shareholder with 35.10 percent owned.
   “Against prevailing economic difficulties, low yields and severe competition, I am proud to say that Cargolux has achieved a solid result in 2014,” Cargolux’s President and CEO Dirk Reich said. “During the last quarter especially, we registered record tonnages and revenues and flew an unprecedented number of block hours. We have grown our market share in all areas and achieved a net profit; a strong signal that our strategy bears fruit and we are on the right track.
   “Cargolux has done its homework and will continue to do so to remain sustainable,” added Reich. “It will help us to secure the future of the company and the jobs of our employees worldwide. I want to thank our staff for an exceptional performance and our shareholders, as well as the Government of Luxembourg, for their continued valuable support and their vision for the future of Cargolux.”
   According to statistics from the International Air Transport Association, Cargolux is the largest all-cargo airline in Europe and the seventh largest worldwide, with more than 85 offices in over 50 countries and over 1,500 employees.