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Nov 05,2021

Air freight services: Lufthansa Cargo business revenue hit a record high

On November 3, local time, German Air Freight Services Lufthansa announced that the company achieved an EBIT of 17 million euros in the third quarter. This is the first time the company has achieved profitability since the epidemic, and this data has also greatly exceeded expected.


Previously, analysts had predicted that Lufthansa would lose 33 million euros in the third quarter. In the same period last year, the company lost 1.26 billion euros. Lufthansa Group CEO Spoel said that with the increase in business travel demand and Lufthansa Cargo’s record performance, Lufthansa "achieved a new milestone" on its way out of the crisis.


German media reported that as European countries reduced travel restrictions this summer, the aviation industry has recovered significantly. Eurowings, a subsidiary of the Lufthansa Group, achieved an EBIT of 108 million euros in the third quarter.


Thanks to the bottleneck of shipping and the interruption of the supply chain, the demand for air transportation in the market is strong. The freight business reached a record high of 301 million euros in EBIT in the third quarter, and is expected to achieve an annual EBIT of 1 billion euros. Target. At present, Lufthansa's cargo business has exceeded the level before the epidemic crisis.


Air Freight Services


In terms of passenger transportation, Lufthansa's passenger traffic reached 19.6 million in the third quarter, about 46% of the pre-epidemic value, and sales of 5.2 billion euros, almost double the same period last year.


With the further relaxation of travel restrictions in Europe and the United States, Lufthansa expects that passenger traffic in the fourth quarter of this year will return to about 60% of the volume before the outbreak of the new crown epidemic, and to 80% in the summer of next year.


At the same time, Lufthansa is gradually getting rid of its financial crisis. In Germany alone, the company has laid off 4,000 employees this year and has reached an agreement with another 3,000 employees. Management expects to lay off another 3,000 employees. Layoffs have reduced the company's annual operating costs by 2.5 billion euros, while the company's goal is 3.5 billion euros.


On the other hand, Lufthansa completed its capital increase in October this year, raising a total of 2.16 billion euros in new capital to repay state aid. At present, the proportion of Lufthansa shares held by the German Economic Stability Fund has dropped to 14.09%.


Lufthansa, the largest aviation Air freight services company in Europe, suffered huge losses at the beginning of the outbreak of the new crown epidemic. It is said that the company lost 1 million euros per hour during the epidemic. Germany has since invested 9 billion euros in bailout funds to prevent Lufthansa from declaring bankruptcy.