Luxembourg’s national freight carrier Cargolux achieved an outstanding financial result in fiscal 2018. The airline’s consolidated net profit reached 188 million euros (US$211 mn), up €79 million (US$ 89 mn) on 2017. The decisive reason for the success was the performance improvement compared to the year before, reads a company release.
It is noteworthy that the leap in profits was achieved despite a global softening in market demand during the second half of 2018, a shorter peak period compared to 2017, uncertainty regarding potential trade wars, geopolitical unrest, lasting tariff conflicts, and negative economic impacts caused by Brexit. Thanks to the earnings, the carrier can further improve its competitiveness. It also enables the management to consolidate the company’s market position as one of the leading capacity providers worldwide.
Fuel savings contributed to positive results
In 2018, one of the main focuses was to undertake a complete IT overhaul to streamline processes, synergize teams internally, and enhance customer experience. This project aligns with the company’s lean & green philosophy and its flexible and adaptable business model, states Cargolux. It paves the way for providing quality services in a lean and efficient manner. A measurable result are the fuel savings achieved in 2018, reducing greenhouse gas emission by 16,750 tons, inspite of the company’s operational growth.
Fine-tuned charter and line-haul services
Commenting on the airline’s 2018 financial performance, Cargolux President and CEO Richard Forson stressed that increased demand for specialized transport of ultra-large, oversized or very heavy items led to record orders for the carrier’s charter division. And the fine-tuned combination of charter missions and line-haul operation contributed a great deal to the success, he said.
So did the more than 2,000 staff standing on CV’s payroll worldwide. “Our employees demonstrated once again that hard work, dedication, and expertise are at the heart of our company’s success and sustainability,” stated Mr Forson.
In short, the airline produced 138,179 block hours; up 3% on the previous year. The Cargolux Group reports a total of 8,409 FTKs across its worldwide network while the available ton kilometers grew to 12,375 million resulting in an overall load factor of 67.9% for the entire year.
Supporting animal welfare
And Cargolux discovered their heart for animals. Hence, some controversial commodities such as hunting trophies have been banned from being flown on board a Cargolux freighter aircraft. What fits in with this picture is the fact that the carrier tries to eradicate animal trafficking by banning illegal wildlife products from being transported, based on the ethical standards of the United for Wildlife Transport Taskforce. “Cargolux revues each demand for animal transport carefully to ensure ethical practices are upheld throughout the transportation chain,” emphasizes the airline.
The Cargolux Group operates a fleet made up of 30 Jumbo freighters – 14 B47-8Fs, 16 B47-400Fs. Based at Luxembourg Findel Airport the freighters serve 75 line-haul destinations worldwide.