Lufthansa Cargo benefits from stable demand

Lufthansa Cargo benefited from stable demand in the second quarter of 2020 as the loss of cargo capacity in passenger aircraft led to a significant increase in yields. Lufthansa Cargo’s Adjusted EBIT thus rose to 299 million euros (previous year: minus 9 million euros).

In the second quarter of 2020, the Lufthansa Group airlines carried 1.7 million passengers, 96 percent fewer than in the previous year. Capacity fell by 95 percent. The seat load factor was 56 percent, 27 percentage points below the previous year’s figure. Freight capacity offered fell by 54 percent due to a lack of capacity on passenger aircraft. The decline in freight kilometers sold was 47 percent. This reflects an increase in cargo load factor by 10 percentage points, to 71 percent.

Lufthansa said this outcome was a result of demand outstripping supply. “Demand for the remaining cargo capacities went up during the first half-year of 2020, with the transportation of personal protective equipment in particular being in strong demand,”

Peter Gerber, chief executive officer, Lufthansa Cargo, commented: “Even during the Corona crisis, we kept our freighter schedule stable to maintain supply chains via air with high flexibility. Our freighters are of high importance in the current crisis. To achieve massive cost reductions, we took measures early on.”

The pandemic negatively impacted the company’s overall group performance.The group experienced a 52% year-on-year decrease in revenues to €8.3bn. Ebit also decreased from €417m in the first six months of last year to  a loss of €3.5bn this year.

Passenger figures during the first six months dropped by 66% year-on-year. Lufthansa warned that its financial outlook continues to be challenged by the effects of the coronavirus crisis. “We expect to report a significant loss in 2020,” it said.

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