CargoLogicAir suffers net loss of US$23.08m despite doubling of revenues
UK-BASED all-cargo airline CargoLogicAir that operates B747 freighters has posted a net loss of GBP18 million (US$23
UK-BASED all-cargo airline CargoLogicAir that operates B747 freighters has posted a net loss of GBP18 million (US$23.08 million) despite revenues increasing by 99 per cent year on year in the 2018 calendar year to stand at GBP213.7 million. Its operating loss amounted to GBP17.8 million.
The higher revenues were attributed to the expansion of its fleet - from three B747Fs in 2017 to four B747Fs by the end of last year - and the resultant increase in flights and services, reported London's Air Cargo News.
However, the fleet and network expansion pushed up costs as the airline also faced challenging market conditions.
'The entry into service of this aircraft has allowed CargoLogicAir to offer a greater range of services to customers and laid the groundwork for the expansion of the airline's scheduled services.
'CargoLogicAir continued to develop its network, with more flights into the US.
'The growth in CargoLogicAir's fleet has led to significant increases in block hour production and aircraft utilisation. While costs have also increased on the back of the rapid growth in operations, this presents an opportunity for greater efficiency in the future.'
On market conditions it said: 'The market for air cargo continues to be heavily commoditised and highly competitive. While 2017 and 2018 were both strong years for air cargo, the industry remains volatile and intrinsically linked to the health of the world's major economies.
'Strong passenger capacity growth (with the resultant bellyhold cargo capacity growth) coupled with the advent of more economical alternative modes of transport has continued to put pressure on a balanced supply/demand environment.'
To combat this the airline said it would focus on creating a more differentiated product offering by developing its unique and oversize capabilities and by expanding its sales capabilities on the back of its B747 freighter fleet.
The report also revealed that the airline was marketing An-124 and IL-76 capacity, presumably that of partner Volga-Dnepr Group.