FRANKFURT: Lufthansa Cargo reported revenues of €2.44 billion in 2013 – down 9.2 percent over the previous year. The operating profit dropped 26.7 percent in the same period to €77 million.
The airline managed its capacity well with a variable of just 0.3 percent year-on-year. Despite an attempt at a rate increase – not viewed with particular favour in its home market – revenue per tonne-kilometres flown and the overall load factor remained the same at 8.7 billion and 69.9 percent respectively.
The company reported a fall of 6.6 percent in its overall costs due to a "vigorously pursued" SCORE (Synergies, Costs, Organisation, Revenue, Execution) programme that reduced expednitures by €38 million and produced an extra €35 million in revenue: "If we want to implement our ambitious programme without cuts, however, we are going to need higher operating results again to finance it," declared Martin Schmitt, Lufthansa Cargo head of Finance and HR. The company says it expects to gain a further €70million from the programme this year – largely due to the additional utilization of the B777 freighter fleet.
Outgoing chairman and CEO Karl Ulrich Garnadt (right) admitted 2013 had been a difficult year but said 2014 should see a "significantly higher result" as a result of ambitious targets that include growing tonnage flown by five percent. The company will take delivery of one more B777 freighter in June this year to add to its fleet of three and will reduce its MD-11 freighter fleet to 14. Other 2014 milestones include ground breaking of its new cargo terminal in May; a bilateral agreement with "an airline outside the Lufthansa Group" – possibly FedEx - by July; and the processing of 200,000 e-AWBs by the end of the year.
Another milestone, or revolving door, will be on May 01 when Garnadt hands over the keys to his desk to former Lufthansa Cargo CFO Peter Gerber who moved to Lufthansa's passenger business in June 2012 as head of HR and IT. On the same day Garnadt starts his new job as CEO of the airline group's passenger operation.