Sizeable cargo growth helps drive Lufthansa Group
LUFTHANSA Cargo is spearheading an upturn for the German airline group by enjoying ‘sizeable growth’ in airfreight demand during the first half of 2018.
The cargo carrier’s adjusted EBIT amounted to €125m in the period, an impressive 60.3 per cent year-on-year improvement, writes Thelma Etim.
“The first half-year (2018) results for Lufthansa Cargo showed particularly sizeable growth, reflecting continuing strong demand for airfreight service products,” notes the parent company in a statement.
Overall, the airline group increased its total first half-year revenues by 5.2 per cent this year, amounting to €16.9 billion, broadly in line with the prior-year level, the financial statement reveals.
Commenting on the results, Ulrik Svensson, chief financial officer of Deutsche Lufthansa AG, observes: “The prime features of Lufthansa Group’s development in the first half of 2018 were strong growth and a simultaneous improvement in our unit revenues. Achieving both simultaneously is a significant success.”
“At our Network Airlines, we were able to more than offset the added burden imposed by higher fuel costs through structural cost reductions and improved results by 26 per cent. Without the integration costs at Eurowings, which we willingly accepted to further strengthen our market position in Europe, the Group’s result would have grown,” he reveals.
During the first half of 2018, fuel costs rose by €216m to €2.8 billion. The increase is attributable to both the higher (passenger) volumes and higher fuel prices, notes the financial statement.
Despite 2018 fuel costs expected to be some €850m higher than in 2017, the chief financial officer forecasts positive results for the rest of the year.
“With the continuing strong demand, we are confident that, despite a challenging prior-year basis for comparison, we will be able to report solid revenue trends for the second half of 2018, too,” Svensson concludes.
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