Cargolux posts net profit rise in 2018

posted on 24th April 2019 by Justin Burns
Cargolux posts net profit rise in 2018

For the second year running Cargolux has registered an increase in net profit after tax – this time of $211.2 million – a significant rise on the $122.3 million in 2017.

This the carrier said came despite a global softening in market demand in the second half of 2018, a shorter peak period compared to 2017, uncertainty regarding potential trade wars, geopolitical unrest and Brexit, Cargolux managed to improve on its performance compared to the previous year.

Increased demand for Cargolux’s transport solutions contributed positively to the airline’s yield quality. The airline produced 138,179 block hours; a three per cent rise compared to the previous year.

The Cargolux Group produced a total of 8,409 FTKs across its worldwide network while the available tonne kilometers grew to 12,375 million resulting in an overall load factor of 67.9 per cent for the year. The company’s high aircraft utilization rate remained stable in 2018.

“Cargolux achieved exceptional financial results in 2018 despite slower economic growth in the second half of the year. Strong focus on the management of our capacity and yields, increased demand for specialized shipments, a record year for our charter division and the diversification into offering ACMI solutions all contributed to the performance achieved.

“Our employees demonstrated once again that hard work, dedication, and expertise are at the heart of our company’s success and sustainability,” said Cargolux president and chief executive officer, Richard Forson.

In 2018, the airline said it continued its journey of transformation to enhance services while ensuring long-term sustainability and growth.

One of the main focuses was to undertake a complete IT overhaul to streamline processes, synergise teams internally, and enhance customer experience.

This project aligns with the company’s lean & green philosophy and its flexible and adaptable business model. Complemented by the ongoing digitalization initiatives, and to enable Cargolux to stay at the forefront of the industry and keep providing quality services in a lean and efficient manner.

The airline continues its efforts towards the establishment of a sustainable business in line with its commitment to the UN Global Compact and its set of Sustainable Development Goals.

The fuel efficiency and CO2 reduction procedures continue to yield positive results as the company keeps exploring new avenues to further reduce its carbon footprint.

The airline has also adopted IATA’s short- and long-term goals for airlines to reduce CO2 emissions with the aim to eventually achieve carbon-neutral growth. Cargolux currently has 15 different fuel saving programs in place to optimise its operation while reducing the negative environmental impacts.

Since the introduction of the company’s Fuel Efficiency roundtable in 2016, significant fuel savings have been achieved through a number of new initiatives.

In 2018, these initiatives, implemented for both Cargolux and its subsidiary Cargolux Italia, yielded considerable results with 6,270 tonnes of fuel saved and 16,750 tonnes less CO2 emissions, despite company growth.