Cargolux shows healthy profit for 2010
After the dramatic decline of the worldwide economy in 2009, Cargolux managed to achieve a remarkable turnaround and reached a net profit of US$ 59.8 million on total income of US$ 1,748 million.
The recovery of the air cargo market continued during 2010 and, while it was initially volume driven, prices started to recover in March. Overall, the air cargo market grew by 20.6 %, after 2 years of decline.
In 2010, the Group made significant progress in reducing its exposure to anti-trust cases. Cargolux entered into settlement agreements with the anti-trust authorities of Canada and New Zealand and accepted a fine imposed by the South Korean authority.
In November, the European Commission imposed a fine of €79.9 million against the Company. Cargolux has filed a court plea for annulment of this decision. Additionally, in December 2010, the Group reached a settlement agreement with US civil class action plaintiffs that provides payment of US$ 35.1 million. This agreement is subject to acceptance before mid-2011 by class members representing at least 75% of the total claims volume, and to final court approval.
In 2010 Cargolux had to face some operational challenges. First, when the Icelandic ash cloud grounded part of the Cargolux fleet for four days in April and, second, when severe winter weather in December resulted in delays and traffic disruptions.
Asian markets turned out to be especially strong and the area was a leader in the 2010 recovery, even though China showed signs of a slow-down during the final months of the year. As Asia was leading the way, other markets began to recover, notably the United States, with Europe and Africa following behind.
With a total of 127,438 tonnes, Cargolux Area 1, The Americas, contributed significantly to the network. It represents a rise of 11.5% versus 2009. Markets were strong throughout the year, in particular in the aftermath of the airspace closure in Europe due to volcanic ash in April. Revenue in Area 1 reached US$ 279.5 million, an improvement of almost 22%.