Lufthansa logistics pre-tax profit falls 74pc to US$21m
GERMANY's Lufthansa's logistics segment first quarter operating profit plunged 74 per cent year on year to EUR19 million (US$21
GERMANY's Lufthansa's logistics segment first quarter operating profit plunged 74 per cent year on year to EUR19 million (US$21.3 million), drawn on revenues of EUR616 million, which fell four per cent.
The revenue decline was blamed on a two per cent drop in traffic to 2.1 billion revenue tonne kilometres, lower load factors and rate declines, particularly between Asia and the Americas.
The profit loss was blamed on a six per cent increase in operating costs as a result of more costly materials and services after taking on the belly capacity of Brussels Airlines, higher depreciation caused by capital expenditure on three new Boeing 777 freighters and new accounting requirements (IFRS 16).
During the quarter, the airline also expanded its partnership with Cathay Pacific on routes between Europe and Hong Kong and two of the new B777Fs were integrated into the Lufthansa Cargo fleet, while the third contributed to Lufthansa-DHL joint venture airline AeroLogic.
Lufthansa Cargo will phase out two of its MD11 freighters by the end of the year.
'Focus remains on improvements to efficiency and cost structures, which are ongoing,' Lufthansa said of its logistics division, which includes Lufthansa Cargo, time:matters and Jettainer.