Cargolux PAT increases to $211.2 mn in 2018 despite geopolitical issues
Luxembourg-based the all-cargo airline, Cargolux has registered an increase in net profit after tax (PAT) for 2018 amounted to $211.2 million, a significant achievement compared to 2017’s profit of $122.3 million. The carrier produced a total of 8,409 freight tonne kilometres (FTKs) across its worldwide network while t
April 24, 2019: Europe's leading all-cargo airline, Cargolux has registered an increase in consolidated net profit after tax (PAT) for 2018 amounted to $211.2 million, a significant achievement compared to 2017's profit of $122.3 million. The group produced a total of 8,409 million freight tonne kilometres (FTKs) across its worldwide network while the available tonne kilometers grew to 12,375 million resulting in an overall load factor of 67.9 percent for the year. The company's high aircraft utilisation rate remained stable in 2018.
Despite a global softening in market demand in the second half of 2018, a shorter peak period compared to 2017, uncertainty regarding a potential trade war, geopolitical unrest, and Brexit, Cargolux managed to improve on its performance compared to the previous year.
Increased demand for Cargolux's transport solutions contributed positively to the airline's yield quality. The airline produced 138,179 block hours; a 3 percent rise compared to the previous year.
"Cargolux achieved exceptional financial results in 2018 despite slower economic growth in the second half of the year. Strong focus on the management of our capacity and yields, increased demand for specialised shipments, a record year for our charter division and the diversification into offering ACMI solutions all contributed to the performance achieved. Our employees demonstrated once again that hard work, dedication, and expertise are at the heart of our company's success and sustainability", said Richard Forson, president and CEO, Cargolux.
n 2018, the airline continued its journey of transformation to enhance services while ensuring long-term sustainability and growth. One of the main focuses was to undertake a complete IT overhaul to streamline processes, synergise teams internally, and enhance the customer experience. This project aligns with the company's lean & green philosophy and its flexible and adaptable business model. Complemented by the ongoing digitalisation initiatives, this will enable Cargolux to stay at the forefront of the industry and keep providing quality services in a lean and efficient manner.
The airline continues its efforts towards the establishment of sustainable business in line with its commitment to the UN Global Compact and its set of Sustainable Development Goals. The fuel efficiency and CO2 reduction procedures continue to yield positive results as the company keeps exploring new avenues to further reduce its carbon footprint. The airline has also adopted IATA's short- and long-term goals for airlines to reduce CO2 emissions with the aim to eventually achieve carbon-neutral growth. Cargolux currently has 15 different fuel saving programs in place to optimise its operation while reducing the negative environmental impacts.
In 2018, these initiatives, implemented for both Cargolux and its subsidiary Cargolux Italia yielded considerable results with 6,270 tonnes of fuel saved and 16,750 tonnes less CO2 emissions, despite company growth.
In an effort to promote environmental awareness and best practices in the air cargo industry, Cargolux has also taken a number of ethical measures. A number of controversial commodities such as lion bone or hunting trophies have been banned from shipment across the company's network. The airline signed the United for Wildlife International Taskforce on the Transportation of Illegal Wildlife Products to fight illegal animal trafficking. An advocate for animal welfare, Cargolux reviews each demand for animal transport carefully to ensure ethical practices are upheld throughout the transportation chain.