Cargolux loses US$153 million in 2009 as volumes fall 11.3pc

LUXEMBOURG's Cargolux, Europe's largest cargo airline, posted one of its worst operating years ever for 2009 as yields fell 26 per cent, load factors by 69 per cent, and volume in kilometre tonnes by 11.3 per cent, resulting in an overall net loss of US$153 million.

Asia freight volumes were down 18.6 per cent, while the Americas saw a 12.1 per cent drop and European throughput declined 7.8 per cent reported the UK's Transport Intelligence, adding that overall tonnage was down 10 per cent.

The air freight rebound in late 2009 did not offset heavy losses sustained earlier, said the company. The impact on cash flow, combined with the added burden of a heavy tax bill, forced the airline to institute re-capitalisation, by which shareholders were asked to contribute $100 million with the government of Luxembourg putting up $100 million in loan guarantees.

While Cargolux continues to carry a heavy load, the sale of two freighters to UPS, together with improved market conditions has helped ease the carrier's financial position.

Cargolux continues to retain a four per cent market share of world air freight, said the report.

 
(Source: www.schednet.com)