Lufthansa Cargo brings back deferred shipments

In another sign that the air cargo overcapacity issue is creating havoc among legacy carriers, Lufthansa Cargo is bringing back the concept of deferred products – this time in the form of td.Basic, a new online offering for standard air cargo that puts the carrier, “on the offensive in the highly competitive air cargo market.”

The online offering for standard air cargo will be available starting in September 2016. The return to the deferred airfreight strategy indicates that the airline has abandoned its prior strategy of “cutting to profitability,” opting instead for filling existing capacity.

The carrier explained that td.Basic offers Lufthansa’s extant reputation for cargo shipments at “extremely attractive prices.” Cheaper options will be possible due to “simpler background processes, booking via the cargo airline’s online channels only, and a somewhat longer duration.”

td.Basic will complement the carrier’s td.Pro standard offering and td.Flash express offering. “This means we will be giving our customers even greater influence over the speed and price of our transport services”, said Alexis von Hoensbroech, Board Member of Product and Sales at Lufthansa Cargo.

Earlier this week, Lufthansa downgraded its earnings expectations for 2016 to less than the previous year. Thus far, the Lufthansa’s provisional figures indicate revenue of US$16.6 billion in the first half of this year, down from the January-June 2015’s $17 billion.