Cargolux: 2013 results show improvement
In today’s Annual General Meeting, the shareholders of Cargolux Airlines International S.A. approved the audited financial statements for the financial year ended December 31, 2013.
In spite of a moderate recovery in the last quarter, the airfreight industry continued to operate in a difficult environment for the most part of 2013. Capacity growth still outstripped demand, which resulted in an industry-wide decline in yields and load factors.
Despite difficult trading conditions, Cargolux grew its activities and increased volumes in a bid to maximize contribution to fixed costs. This was achieved quite successfully, as the company recorded a tonnage growth of 16.7% over 2012 to 753,848 tonnes – exceeding the 2013 budget by 13.5%. Total revenues grew by 14.4% to US$ 1,988.5 million while tonne-kilometers flown increased from 4.8 million in 2012 to 5.7 million in 2013.
Cargolux operated 95,022 block hours, 13,364 hours more than planned for 2013. The high amount of operational activity contributed towards achieving a net consolidated gain of US$ 8.4 million, a noteworthy improvement over the originally budgeted loss for 2013 of US$ 27.1 million.
Cargolux expanded its fleet with three new Boeing 747-8Fs and retained, on a power-by-the-hour basis, a Boeing 747-400F that was initially planned to exit the fleet during 2013. It also added a Boeing 747-400ERF on the same basis, which brought the fleet to 20 aircraft at the end of the year. In contrast, the budget for 2013 foresaw a fleet of 16 aircraft only.
With a bigger fleet and more operational activity than planned, Cargolux recorded an average daily aircraft utilization of 14:57 hours. The company’s market share reached 3.5% and it ranked at No. 8 among the world’s dedicated freighter and combination carriers in terms of FTKs.
‘We don’t expect market conditions to improve significantly in 2014,’ said Cargolux President and CEO Dirk Reich. ‘Our priority is to grow and expand our global network with the continued support and valuable contribution of our hard working employees while focusing on efficiency and performance improvements. I am also confident in our ability to reap the first tangible rewards from the cooperation with our new shareholder HNCA’, Reich added.