| Cargolux Announces Record Results in 2002 Luxembourg, 16 April 2003 - Cargolux Airlines International S.A. announced at its annual press conference today that it registered record sales and operating profit in 2002. The operating profit increased by 150% to US$55.7 million, generating an operating margin of 6.9%. Net profit increased by 220% to US$49.3 million. The year was marked by economic and political uncertainties. Despite the unfavourable market environment, Cargolux’s operating revenues increased by 10.45% to US$807.5 million. The company's core business, the sale of air lift and related transportation services, generated over 98% of the income and increased by 11.05%. Ton kilometers flown were 4,157 million, an increase of 10.3%. This compares to an estimated industry-wide increase of around 5% for cargo ton kilometers flown. Total block hours, including leased-in capacity from other carriers, increased to 65,095. System-wide load factor was 72.5%, an increase of 3.1% over 2001. Operating expenses increased by 7.7% to US$705.8 million. Fuel continued to represent the company's largest expense item, but decreased by 0.1% notwithstanding the increase in block hours. The average jet fuel price declined by 4 %. Cargolux contributed nearly Euro 200 million to the Luxembourg economy by way of salaries and other employee benefits, social security, taxes, and the purchase of goods and service during 2002. The benefits of its contribution to the wealth and the job creation in Luxembourg are becoming more apparent as the public recognizes the need to diversify Luxembourg’s economy. Together with the Luxembourg Airport Authorities as well as Luxair, Boeing and Rolls Royce, Cargolux actively participates since 2000 in a program to reduce the impact of the airport’s activities on surrounding communities. In 2002, the airline implemented a new descent profile of aircraft landing in Luxembourg. This translates into an approach at higher altitude over populated areas, which consequently reduces the noise impact on those areas. At the same time, reduced wing flaps also contribute to minimize noise and fuel consumption. These procedures, combined with Cargolux’s energy efficient aircraft, have lessened the overall impact on the surrounding communities. In terms of total traffic movements at Luxembourg airport, Cargolux aircraft accounted for only 5.3%, with some 12 take-offs and landings combined per day. Last year Cargolux increased its percentage of traffic between foreign countries, known as fifth-freedom traffic. With active support from the Luxembourg government, the airline launched operations in new sectors, for example on routes within South America, on routes between the Philippines and Taiwan and between Taiwan and Bangkok. Cargolux started flights or added frequencies to 9 destinations, Abidjan, Baku, Johannesburg, La Reunion, Milan, Mexico, New York, Shanghai, and Tehran. The company wants to continue to aggressively grow traffic that does not transit through Luxembourg. Cargolux added a twelfth aircraft in August to match market requirements. The financing for the aircraft was supported by the European Investment Bank and the Export-Import Bank of the United States. The good results for 2002 prove that Cargolux succeeded in its mission to secure its profitability by providing freight forwarders unrivalled competitive advantage worldwide. Customer satisfaction was notably illustrated by the award that the company received from the readers of Air Cargo News, mostly forwarders and other participants in the air cargo business, who voted Cargolux the best all-cargo airline for 2002 for the fourth consecutive year. For a full copy of the 2002 annual report, please visit www.cargolux.com Cargolux, based in Luxembourg, is Europe’s largest all-cargo airline, operating a modern fleet of 12 B747-400 freighters on a worldwide network, covering some 90 destinations, 50 of which are served on scheduled all-cargo flights. The company has more than 85 offices in over 50 countries and also offers an extensive trucking network to more than 50 destinations in Europe and the US as well as charter and aircraft maintenance services. Cargolux employs more than 1300 staff worldwide.
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