Lufthansa strengthens position in air freight industry

By Freddie Pierce
The global economic crisis that started in the late 2000s hurt businesses all over the world. Remarkably, one report that surfaced today is claiming a...

The global economic crisis that started in the late 2000s hurt businesses all over the world. Remarkably, one report that surfaced today is claiming a major air freight company was helped by the worldwide economic instability.

TransportIntelligence.com said today in an article titled “Lufthansa continues to exploit air freight’s recovery” that German-based Lufthansa Cargo “used the recession to increase its market share.”

“Exploit” is a pretty harsh word, but Lufthansa Cargo has reported some pretty remarkable figures over the last few quarters. The first quarter of 2011 may have been its best. Lufthansa Cargo increased revenue by 31.8 percent year-on-year, while its earnings before interest, tax, depreciation and amortization (EBITDA) is up 19.7 percent.

The report attributes increasing demand as the biggest reason to Lufthansa Cargo’s success, but that hasn’t helped some of the company’s biggest competitors in air freight.

Air France-KLM reported much more modest figures for the first quarter and still saw an operating loss of €9 million and hasn’t shown a drastic increase in shipping volume.

Japan’s ANA airlines saw drastic growth in international traffic, but its domestic business grew only 1.8 percent.

SEE OTHER TOP AIR FREIGHT STORIES IN THE WDM CONTENT NETWORK

E-Commerce spike helping shipping leaders

In Transit: Fixing Airline Maintenance

Air India pilot strike hurting air freight industry

Check out May’s issue of Supply Chain Digital!

So does that make Lufthansa Cargo ruthless or business-savvy? The company is now the largest air cargo carrier outside of the major multinational corporations, and certainly a strong business plan during the global economic crisis helped the company survive and grow.

Lufthansa Cargo has continued to expand its fleet, and its unparalleled growth in the air freight industry raises some concerns as to how the German-based airline has had success when others have struggled.

Until we hear of any wrongdoing from Lufthansa Cargo, however, we’ll attribute the success to smart management. Part of being a long-term successful business is exploiting opportunites, and that’s exactly what Lufthansa Cargo did.

Share

Featured Articles

Heineken Toasts Success of Supply Chain Transformation

Digital transformations have a notoriously high failure rate but not so at Heineken, who has transformed its European logistics operations to great effect

GEP's Procuretech Advice, as new Scope 3 Reporting Laws Loom

GEP issues advice around mandatory Scope 3 reporting, an issue that will figure large at Sustainability LIVE: Net Zero, being held in London

Cainiao: The World's Largest Ecommerce Logistics Provider

As Alibaba-owned Cainiao announces big Q3 FY2024 revenues rise, we profile the world's largest global e-commerce logistics services provider

FedEx Express Opens Singapore Logistics HQ

Logistics

Supply Chain Problems Sees Partnerships Programme Grow

Operations

Bain: CEOs Leveraging Supply Chain for Competitive Edge

Digital Supply Chain