Lufthansa Cargo increased operating profits markedly to 135.6 million euros in the 2007 (2006: 81.5m euros) business year despite fierce competition and mounting excess capacities in the market. Revenues were down year-on-year by 3.8 per cent to 2.74 billion euros (2006: 2.85bn euros).
During the year, the cargo carrier subsidiary in the Lufthansa Group transported 1.8 million tonnes of freight and mail, an increase of 2.6 per cent on the year-earlier level. Capacity in 2007 was up by 2.2 per cent to 12,236 million freight tonne-kilometres (FTKO), while sales grew by 4.3 per cent to 8,451 million freight tonne-kilometres transported (FTKT). The cargo load factor climbed accordingly by 1.4 percentage points to 69.1 per cent.
'These figures substantiate the growth policy we are pursuing. The Company has once again demonstrated impressively that we can still perform exceptionally even in difficult market conditions,' said Lufthansa Cargo Chairman Carsten Spohr.
The Company's 'Excellence + Growth' profit-enhancement programme contributed in no small measure to the success of the 2007 business year. Launched four years ago, the programme was wound up at year-end 2007 after contributing additional earnings totalling 258 million euros, which is 25 million euros more than planned. 'Excellence + Growth has appreciably increased value creation at Lufthansa Cargo and laid the foundations for ongoing profitable growth,' observed Board Member Finance and Human Resources Dr. Roland Busch.
Unit costs were further reduced during the year. Averaged over the twelve-month period, the number of employees fell slightly from 4,671 to 4,587.
Lufthansa Cargo is aiming to expand its strategic market position as a global cargo carrier through profitable, continuous and low-risk growth in all traffic regions. A key element in that strategy is the combination of several companies under a single strategic roof in the Lufthansa Cargo Group.
The Lufthansa Cargo Group offers customers not only the capacities available in Lufthansa Cargo's own fleet of 19 MD-11 freighters and in the belly holds of around 400 passenger aircraft operated by Lufthansa Passenger Airlines, but also the capacities on six freighters in the fleet of the Sino-German joint cargo carrier, Jade Cargo International. With its Boeing 747-400ERF's, Jade Cargo International serves major markets around the world from the southern Chinese business metropolis of Shenzhen and from Shanghai. In the new summer flight schedule, beginning 30 March 2008, Lufthansa Cargo is extending its cooperation with Jade Cargo International by assuming responsibility for capacity and sales for its Sino-German cargo subsidiary on all routes from Europe to Asia.
Lufthansa Cargo is also positioned to harness growth potential inherent in the AeroLogic cargo carrier set up jointly with DHL Express, in which each hold a 50 per-cent stake. The new company, based in Leipzig/Schkeuditz, has emerged from the joint intercontinental joint venture operated by the two partners since 2004. AeroLogic will be running flights with a fleet of eleven leased Boeing 777-200LRF freighters by 2012, the first four of which are due for delivery in 2009.
Lufthansa Cargo Chairman Carsten Spohr is anticipating continued success in 2008: 'In harness with strong partners in the Lufthansa Cargo Group, we offer customers an attractive array of services for their global logistics requirements. With a future 36 long-range freighter aircraft, Lufthansa Cargo Group will command one of the world's biggest freighter fleets.'
In a breakdown of earnings on routes into and out of Germany, revenue from the Asia traffic region again outstripped income from the Americas, Europe and the Africa/Middle East region. But Asia's share in total traffic revenue was down owing to declining yields.
During the year, Lufthansa Car
