Notwithstanding a turbulent environment marked by low yields, strong competition and overcapacity, Cargolux Airlines has recorded robust results for its first quarter this year, one of its strongest first quarters for several years said they company, and marking a continuation from its performance last year.
With 2016’s net profit at US$5.5 million (€5.06 million), the group’s scheduled freight tonne kilometres (FTK) grew by 10%, against an average market growth of 3.8%, to reach a worldwide market share of 3.9%. This puts Cargolux sixth in IATA’s ranking for international scheduled FTKs, the highest position the airline has held in its history.
The company says that an extremely good peak season produced all-time record results. In November 2016 alone, the airline registered over 12,000 block hours flown and in excess of 96,000 tons sold. During that month, the airline also achieved a near record-high daily aircraft utilisation with 16:74 block hours per day, second only to November 2013, when Cargolux freighters flew an average of 16:85 hours per day.
“The excellent results for 2016 are testament to the strength of Cargolux and the dedication and passion of our employees who deserve special recognition for their effort and hard work, especially during the last quarter,” said Richard Forson, Cargolux President & CEO.
“They have enabled the airline to perform all flights as planned and deliver on our service quality promise towards our customers, who, in turn, continue to support us with their loyalty and trust. The success of Cargolux is truly a team effort and that is exactly the way it should be.”
Last year, the Cargolux Group carried 964,131 freight tonnes on its global network. The available tonne kilometres increased to 11.310 million. The overall load factor stood at 66.76%. With a stable fleet of twenty-six 747 freighters, a mix of 747-400Fs, 747-400BCFs, 747-400ERFs and 747-8Fs, the group flew 122,575 block hours, a 6.7% increase over 2015. The average daily aircraft utilisation of the combined 747-400F and 747-8F fleet for the year stood at 14:35 hours, excluding the Power by the Hour 747s.
Cargolux operations to and from Zhengzhou were further developed and the destination is now the Group’s largest hub in mainland China, surpassing Shanghai. Flights between Luxembourg and Zhengzhou were complemented by services across the Pacific to Chicago and back. The airline carried over 105,000 tonnes of freight to and from Zhengzhou during 2016, compared to 66,000 tonnes in 2015, a significant achievement that underlines the success of its growing China business.
In 2016, Cargolux took delivery of its fourteenth 747-8F. These aircraft not only present a significant investment in an efficient fleet and sustainable air freight transport, it also underlines Cargolux’s commitment to an operation that has the lowest possible impact on the environment and the people living in neighbouring communities. In June 2016, the company’s environmental efforts were further validated as Cargolux became the first airline worldwide to be honoured with the Lean & Green award, recognising the company's commitment to improving its carbon efficiency by 10% within five years.
