Lufthansa Cargo on course for record result in 2020 but Lufthansa Technik struggles continue

Lufthansa Cargo has reported a four per cent revenue increase in the first nine months of 2020 compared to the year-before period, to €1,907 million. There was a two per cent dip in the third quarter, to €587 million.

Lufthansa Group noted that its logistics business had stood out positively against the rest of its operations, including Lufthansa Technik, which have suffered as a result of the impact of Covid-19.

Lufthansa Cargo results 9M 2020
Lufthansa Cargo 9M 2020 results. Click to enlarge.

The Cargo revenue increase in the first nine months came despite a 36 per cent decline in freight capacity, triggered by a loss of freight capacity in passenger aircraft. Lufthansa Group said revenue was driven by the fact it operates “one of the largest and most modern freighter fleets”, comprising 13 777Fs (including Aerologic) and six MD-11s.

Yields increased in all regions, with the global loss of cargo capacity in passenger aircraft. Lufthansa Cargo earnings after nine months rose to €446 million, compared to a €-33 million result in the same period in 2019.

Lufthansa Technik saw nine month revenue decline 39 per cent compared to the year-before period, to €2,973 million. In the third quarter, revenue fell 58 per cent to €693 million.

A variety of factors have had a “drastic impact” on the MRO business as a result of the global pandemic. Planned flight hours have not been carried out, while there has been a growing pressure on airlines and a resulting retirement and decommissioning of aircraft.

Lufthansa Technik 9M 2020 results
Lufthansa Technik 9M 2020 results. Click to enlarge.

Lufthansa Technik’s earnings for the first nine months fell from €351 million in 2019 to €-208 million in 2020.

The group noted that personnel measures such as the introduction of short-time working and the deferral of investment projects have “helped to cushion the effects of the coronavirus crisis”.

As well as these short-term measures, Lufthansa said various projects were under way to “get the company through the crisis successfully and ensure that it continues to play a key long-term role in the independent MRO market”.

Lufthansa Group 9M 2020 results
Lufthansa Group 9M 2020 results. Click to enlarge.

Assessing the immediate outlook, Deutsche Lufthansa’ CEO Carsten Spohr commented: “People around the world have a great desire to travel again soon. Together with our partners, we are ready and will do everything we can to fulfil this desire as quickly as possible and with the highest health and safety standards. The important thing now is to ensure health protection and freedom of travel, for example by means of widespread rapid tests.”

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