Cargolux reports 2017 was ‘best year in history’

Joining the chorus singing the praises of last year nearly across the board in the airfreight industry, Luxembourg-based Cargolux said today that 2017 was the carrier’s “best year in history,” reporting that it broke 1 million chargeable tonnes flown for the first time ever, and experienced a 2,123 percent rise in net profit to US$122.3 million, compared to the previous year.

The company’s net-profit figures have fluctuated from positive, to negative, to just bobbing above breaking even, ever since the all-cargo carrier began to struggle amidst its many internal management changes and the slump in airfreight demand that began in  2012.

While the margins make for impressive headlines, its profit increase in 2017 springs out of the 2016 year in which its net profit dipped from $49 million in 2015, to just $5.5 million.

The company has done well since then in optimizing the use of its aircraft and increasing traffic – reporting an average utilization rate of 15 hours, with block hours rising 7 percent to 131,212, and freight tonne kilometers (FTK) improving by 12 percent.

The carrier captured the increased demand for airfreight experienced industry-wide in 2017, and said it plans to expand its international destinations looking ahead. In the statement, the airline indicated its intent to amplify its presence in China, especially at the rapidly-growing Zhengzhou hub.