Cargolux revenues and net profits suffer blow in 2019
CARGOLUX says its full-year results for 2019 show that revenue plunged 14 per cent to US$2
CARGOLUX says its full-year results for 2019 show that revenue plunged 14 per cent to US$2.4 billion compared to $2.6 billion 2018.
The cargo carrier said this was due to lower load factors and yields coupled with lower fuel surcharge revenues as a result of declines in the price of fuel.
Earnings before interest and tax decreased from $321 million in 2018 to $114 million last year and net profits dropped from $211 million to $20 million.
Freight tonne km (FTK) volumes dropped by 2.1 per cent year on year to 8 billion FTK. However, Cargolux said that it had outperformed the market. IATA figures show that the top ten cargo airlines experienced a 3.9 per cent FTK decline last year, reports London's Air Cargo News.
'In 2019, Cargolux witnessed softening markets, unresolved trade conflicts, and uncertainties surrounding an agreement on the UK's exit from the EU,' the airline said.
'This resulted in a general downtrend in the industry, specifically over-capacity in the markets. After a solid start to the year, the industry experienced weak demand for the available capacity during the summer and autumn period, prior to a short peak season in the fourth quarter.'
The decline in profits and revenues follows two years of growth, culminating in a record result in 2018.
At the end of December 2019, Cargolux had a fleet of 30 aircraft: sixteen Boeing 747-400 freighters (11 B747-400Fs and 5 B747-400ERFs) and fourteen Boeing 747-8 freighters.
Like other operators of 747-400 freighters, Cargolux recorded an impairment of $47.6 million in respect of its B747-400 fleet in 2019.