Breaking News – LH Cargo’s EBIT Takes Big Leap Forward

During the first six months of 2018, the Frankfurt-based freight carrier achieved an Adjusted EBIT totaling 125 million euros, up a stunning 60.3 percent on the previous year. And the
rally is expected to continue in the coming months, predicts the management.

The half-year figures presented by the freight airline today (31 July) are surely worth management and staff toasting with a glass of sparkling wine. They evidence the carrier’s continued
recovery after the disappointing year 2016 when LHC slipped into the red.

Combination of various factors
According to LHC head of communications Jacqueline Casini a combination of external and internal factors led to the positive results achieved.
Starting with the aspects hardly influenceable by the airline she mentions first and foremost the markets LHC serves that have developed very well. This includes transatlantic routes to/from
North America, particularly the USA, that continue thriving, not showing any sign of weakness despite the current discussions between the Trump administration and the European Commission over
punitive tariffs.
Another success factor was the efficient capacity management enabling LHC to react to fluctuations in supply and demand, thus reducing the risks while increasing the productivity.

Alliances run extremely well
Also, the restructuring and cost cutting program named “C40” launched in crisis year 2016, demanding savings of €80 million per year and implemented on a lasting basis, continues to bear
fruit.
Thirdly, the route joint ventures signed with ANA Cargo, Cathay Cargo and United Cargo run all “extremely well,” confirms Ms Casini. “Particularly our partnership with United Cargo that’s
operational only since last May, “enjoyed a brilliant start,” she tells.

High peak expected but below last year’s level
Looking beyond the first half-year the carrier expects that its business remains on the growth trajectory. This is indicated by all core data. Sales might even accelerate in the weeks and months
ahead pushed by the carrier’s decision to open up a new booking channel for the spot segment. Using this new platform provided by Berlin-based specialist “cargo.one” enables forwarding agents the
booking of air freight transport capacity at spot rates with instant confirmation. “We are now offering our customers the opportunity to exchange prices and capacities even faster and to book
services even easier,” commented CEO Peter Gerber when announcing the cooperation between “cargo.one” and his airline.
However, even if the business is really buzzing at the moment, Jacqueline Casini does not expect a new record 4th quarter this year. “Of course, we will see a peak, but we don’t expect that sales
surpass the fantastic results generated in 2017.”

Heiner Siegmund

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Source: Cargoforwarder

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