Challenging first half for Lufthansa Cargo in interim results

Lufthansa Group reported a 2% year-over-year decline in traffic for both the second quarter and first half of 2019, which the group attributed to “lower economic growth and market uncertainty in the face of trade conflicts and Brexit.” 

Traffic figures stood at 4.50 billion revenue tonne kilometers (RTKs) for Q2 and 5.24 billion RTKs for the first half. Meanwhile, capacity grew during the same period, by 8% for Q2 and H1, and cargo load factors subsequently declined by 5.9 points to 59.8% for Q2 and 6.6 points to 61.2% for H1. 

Of its logistics business, the carrier said it is responding to weaker market demand by adjusting its flight schedule and reducing the use of its MD-11 freighters. To make its cargo business more efficient in the challenging environment, Lufthansa is working on its fleet renewal plan and optimizing its current fleet via capacity planning. The carrier also said that six of its 14 A380 passenger aircraft will be sold back to Airbus, leaving the fleet during 2022 and 2023. 

Overall, Lufthansa Group reported respective revenue increases of 4% and 3% for Q2 and H1, to €9.63 billion and €17.52 billion. However, Lufthansa also reported a net loss of €116 million for the first half, while its second-quarter net profit was down 70% y-o-y to €226 million.