Rising demand, cost-cutting program help Lufthansa soar in Q3

In the latest instance of a carrier benefiting from the global surge in demand for airfreight, The Lufthansa Group said its earnings before interest and taxes (EBIT) in the third quarter of 2017 reached  €21 million, compared to a loss of €17 million in Q3 of 2016.

The German carrier said that, apart from the general increase in airfreight demand worldwide and a more favorable pricing environment, it also succeeded in Q3 thanks to a cost-cutting program that began last year and is beginning to pay dividends this year. Revenues from Lufthansa’s Logistics segment also rose sharply, by 17.4 percent, year-over-year, during the quarter, to reach €594 million.

In the first nine-months of 2017, LH Cargo revenues, excluding other Logistics revenues, increased by 15.9 percent, y-o-y, at €1.64 billion. The Logistics sector also achieved net profits €105 million on lower expenses, which was a significant turnaround from the €63 million loss it reported in Q3 2016.

For more on how Lufthansa’s freighter strategy played a role in its Q3 turnaround, please see the report in our sister publication, Cargo Facts:

http://cargofacts.com/new-strategy-delivers-3q-dividends-for-lufthansa-cargo/