Lufthansa Cargo has successfully turned its business around, with the announcement of a DM194 million ($110 million) pre-tax profit for 1997.
The company recorded the profit on a turnover of DM3.9 billion for regular business. Including income from the sale of its stake in Luxembourg's Cargolux, the company beat the DM4 billion sales mark for the first time .
"With that performance, Lufthansa Cargo has completed its turnaround after two difficult years -[and] has strengthened its position as market leader in international air freight," says the company. In 1996, Lufthansa Cargo lost DM60 million.
The company says that several factors contributed to the result, pointing primarily to the export boom caused by the weakness of the duetschemark against other major currencies.
The improvement in fortunes has continued into the current year, with the company revealing its first ever gain for an opening quarter.
Profit for the period amounted to DM19 million, compared with a DM10 million loss in the comparable period last year.
Overall, the company is predicting a "similarly positive "result for the year as that achieved in 1997.
The airline is continuing its drive to control costs by upgrading its fleet. The first Boeing MD-11F freighter was rolled outat the end of April, and is due to begin flight testing in mid-May in time for an end of June delivery. The company has ordered eight aircraft of this type, to be delivered by the end of 1999, with a further three options for delivery in 2000.
Source: Flight International
