Lufthansa Cargo cuts capacity after 21.4pc decline

LUFTHANSA Cargo, Germany's heavyweight air-cargo carrier, blamed a steep 21.4 per cent decline in December volumes on the global downturn worsened by the normal slack season, plus German plant closures and a failing automotive sector.

Lufthansa Cargo's December airfreight dropped six per cent, or by 1.696 million tonnes to 114,000 tonnes. Rivals also suffered with Air France-KLM down 20.4 per cent and British Airways of 14.3 per cent.

According to Newark's Journal of Commerce, total cargo for the month, including subsidiary Swiss Cargo, fell to 131,000 tons down 20.1 per cent with revenues off by 19.8 per cent and load factor down 9.8 points at 57.1 per cent. This, despite capacity cuts of 7.6 per cent with a factor of 59.9 per cent, a drop of 11.1 per cent.

Year-on-year results show cargo revenues decreased of 22.1 per cent. However, traffic was 0.4 per cent higher at 1.918 million tons with 19.2 per cent drop to 37,000 tons for Americas traffic and 23.7 per cent to 34,000 tons for and Asia-Pacific.

A 10 per cent drop in capacity is expected in 2009 in capacity with a lessening of its US-based World Airways partnership operated by two MD-11 freighters and a Boeing 747-400 freighter. These routes are to be transferred to its Shenzhen joint venture partner, Jade Cargo International.

Source: CRIEnglish