LUFTHANSA's' logistics division, including lufthansa Cargo, experienced operational challenges in the first quarter of the year, reporting a notable decline in revenues and earnings, reports London's Air Cargo News.
Weakening air cargo rates and industrial strikes contributed to a 16 per cent year-on-year drop in revenue.
The challenging market, coupled with strikes and increased operational costs, impacted the division's financial performance.
Lower yields led to a 17 per cent decrease in traffic revenue, while rising costs, including staff wages and depreciation fees, added further pressure.
Despite these challenges, air cargo traffic increased 10 per cent, reflecting overall market trends, with a 2.1 percentage point improvement in the cargo load factor.
However, the Lufthansa Group reported an adjusted EBIT loss of EUR849 million (US$912 million) for the first quarter, primarily attributed to the impact of strikes.
Moving forward, Lufthansa aims to mitigate cost pressures through cost-saving initiatives while navigating ongoing market volatility and operational disruptions.
SeaNews Turkey
Weakening air cargo rates and industrial strikes contributed to a 16 per cent year-on-year drop in revenue.
The challenging market, coupled with strikes and increased operational costs, impacted the division's financial performance.
Lower yields led to a 17 per cent decrease in traffic revenue, while rising costs, including staff wages and depreciation fees, added further pressure.
Despite these challenges, air cargo traffic increased 10 per cent, reflecting overall market trends, with a 2.1 percentage point improvement in the cargo load factor.
However, the Lufthansa Group reported an adjusted EBIT loss of EUR849 million (US$912 million) for the first quarter, primarily attributed to the impact of strikes.
Moving forward, Lufthansa aims to mitigate cost pressures through cost-saving initiatives while navigating ongoing market volatility and operational disruptions.
SeaNews Turkey
