Cargolux’s 2018 net profit soars 73%

Cargolux B747-8F
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Cargolux has again this year reported rising profitability with a consolidated net profit after tax for 2018 amounting to USD 211.2 million, up an impressive 72.6 per cent over 2017’s profit of USD 122.3 million.

Despite a softening global cargo market 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, it says. The airline produced 138,179 block hours; a 3.0 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 kilometres grew to 12,375 million resulting in an overall load factor of 67.9 per cent for the year. The company’s high aircraft utilisation rate remained stable in 2018.

“Cargolux achieved exceptional financial results in 2018 despite slower economic growth in the second half of the year,” says Richard Forson, Cargolux president and CEO. “Strong focus on the management of our capacity and yields, increased demand for specialised 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”, he adds.

In 2018, the airline says 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 digitalisation initiatives, this will enable Cargolux to stay at the forefront of the industry and keep providing quality services in a lean and efficient manner,” it adds.

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 programmes 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.

In an effort to promote environmental awareness and best practices in the air cargo industry, Cargolux has also taken a number of ethical measures. A number of controversial commodities such as lion bone or hunting trophies have been banned from shipment across the company’s network.

The airline signed the United for Wildlife International Taskforce on the Transportation of Illegal Wildlife Products to fight illegal animal trafficking. An advocate for animal welfare, Cargolux reviews each demand for animal transport carefully to ensure ethical practices are upheld throughout the transportation chain.

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