CARGOLUX REPORTS LOWER PROFIT IN 1999

CARGOLUX REPORTS LOWER PROFIT IN 1999    Cargolux, the Luxembourg-based operator of B747-400 freighters, reported lower profits for 1999 due to rising fuel costs and declining air freight yields, the airline said.
   After-tax profit hit $30 million last year compared to $92 million in 1998, when net profit was positively affected by one-time gains from the sale of assets.
   Cargolux’s bottom line slumped despite strong business growth. Revenue increased 11 percent to $644 million on a 21 percent jump in traffic to 377,550 metric tonne-kilometers sold. The airline bought four new B747-400 freighters last year, boosting capacity by 20 percent. It added service to China, Australia and New Zealand, hired 147 new employees and invested some $700 million.
   Heiner Wilkens, president and chief executive officer of the airline, pointed to the airline’s investments as momentum for bottom line improvements this year. The airline intends to expand its technology and ground handling capabilities in 2000.
   “We launch these activities with the clear goal of creating more value for our customers – the forwarders worldwide,” Wilkens said.