Operating performance.

Lufthansa Cargo's traffic figures for 2014 were down slightly on the previous financial year. The volume transported fell by 2.7 per cent. Available tonne-kilometres were reduced by 1.1 per cent and cargo tonne-kilometres fell by 1.4 per cent. The cargo load factor was 0.2 percentage points lower than in 2013. Although cargo capacities on passenger aircraft grew further, the company’s own freighter capacities were reduced sharply in some cases.

In the Americas traffic region, freight volumes were largely unchanged on the previous year (+0.1 per cent). Cargo tonne-kilometres rose by 0.6 per cent and available tonne-kilometres were reduced by 1.0 per cent. This led to a 1.1 percentage point increase in the load factor.

Cargo volumes were stagnant compared with the previous year in the Asia/Pacific region, too (-0.1 per cent). Capacity here was cut by 1.4 per cent. Cargo tonne-kilometres fell by 2.4 per cent, trimming the cargo load factor by 0.8 percentage points.

The Middle East/Africa traffic region recorded a significant downturn in cargo volumes. Transported tonnage was down 4.8 per cent on 2013. While sales to and from Egypt went up again, volumes in the Middle East went down significantly. Capacity was cut by 2.1 per cent. As cargo tonne-kilometres declined by 4.8 per cent, the load factor fell by 1.6 percentage points.

 

Freight volumes within Europe fell by 6.5 per cent. Available tonne-kilometres rose by 1.9 per cent but cargo tonne-kilometres fell by 4.3 per cent, causing the load factor in this traffic region to drop by 3.2 percentage points compared with the previous year.

Revenue and earnings development.

The Logistics subgroup recorded a profit before income taxes of EUR 110.5m in the 2014 financial year. This represents an increase of EUR 22.3m or 25.3 per cent compared with the 2013 financial year. The operating result, which, unlike profit/loss from operating activities, does not include neutral expenses or neutral income, came to EUR 100.3m (previous year: EUR 79.3m*). The operating margin went up as a result by 0.9 percentage points to 4.1 per cent.

Revenue in the 2014 reporting period totalled EUR 2,435.3m, remaining largely unchanged on the previous year (-0.3 per cent). A large part of revenue comes from traffic revenue, which went down only slightly, by 0.5 per cent to EUR 2,380.2m, in line with volumes.

Other capitalised internal expenses increased by EUR 1.1m year on year to EUR 6.1m. These expenses relate to internal project expenses, which have to be capitalised, in particular for the construction of the new freight centre in Frankfurt (LCCneo) and the new IT platform.

Other operating income fell by EUR 24.4m year on year to EUR 78.7m. This was mainly due to a decrease in the foreign exchange result, lower reimbursements from the Group for restructuring measures in connection with the SCORE programme and a lack of income from the sale of emissions certificates. This was offset by increased compensation payments.

Total income came to EUR 2,520.1m, representing a slight decrease of 1.2 per cent.

Operating expenses went down by 2.5 per cent year on year to EUR 2,415.2m.

The cost of materials and services dropped by 6.0 per cent compared with the previous year to EUR 1,690.2m.

Its main components changed as follows:

Staff costs were almost identical to the previous year, falling by just 0.2 per cent to EUR 387.3m. The average number of employees in the Logistics business segment over the course of the financial year was 4,656. This represents an increase of 30 employees compared with the previous year.

Depreciation and amortisation came to EUR 63.9m, EUR 21.2m higher than the previous year’s figure. This was due to a change in the useful lives of aircraft as well as the addition of the new Boeing 777 cargo aircraft.

Other operating expenses rose to EUR 273.8m, 9.6 per cent higher than in the previous year. This was largely due to an increase in exchange rate losses, and was offset by a fall in agency commissions.

The financial result declined by EUR 9.2m year on year to EUR 5.6m, primarily as a result of increased interest expenses relating to aircraft financing. Capital expenditure went down by EUR 104.1m to EUR 213.9m, mostly due to lower prepayments and final payments in connection with the purchase of the Boeing 777F aircraft. This was offset by increased capital expenditure on the construction of the new air freight logistics terminal as well as IT projects.