| Cargolux acheives good levels of profitability despite high fuel prices in 2004 - SALES OVER THE USD 1 BILLION MARK FOR THE FIRST TIME
IN COMPANY’S HISTORY, AMOUNTING TO USD 1.2 BILLION.
In 2004, Cargolux carried 595,019 tonnes of freight, 17.3% more than in 2003. Tonne-kilometers flown grew by 15.5% and reached 5,115 million. The company was the 8th largest air cargo carrier worldwide measured in tonne-kilometers flown and remains the biggest all-cargo carrier in Europe. The company’s core business, the sale of air lift and related transportation services, accounted for 98.4% of the total operating income and grew by 26.3%. Charter activities more than doubled in revenues. “We are pleased to report the satisfactory 2004 results despite a very tough international air cargo market,” says Cargolux President and CEO, Ulrich Ogiermann. “Operating in an environment marked by fierce competition and historically high fuel prices we are proud of having achieved our targets for the year 2004. Thanks to a great team we have managed to expand our position in Europe and achieve profitable growth on a higher level than most of our competitors. We continue to accompany our customers on potential growth markets and reinforce our position on the crossroads of the major trade flows worldwide.” Operating expenses increased by 28.4%,
mainly due to higher fuel prices and the strong euro. Costs for fuel were
about 60% higher compared to 2003 and the strong European currency drove
up expenses for items such as handling, trucking and personnel. 2004 IN REVIEW NETWORK New partnerships and alliances as well as the opening of new routes contributed to the expansion of Cargolux’s global presence in 2004. The fruitful co-operation with China Airlines, Azal Azerbaijan Airlines, Aeromexpress (Mexico), Pacific East Asia (Philippines), Alitalia and China Eastern Airlines yielded satisfactory results. New routes opened in 2004 included
Helsinki, Barcelona, Kinshasa, Eldoret (Kenya), Lagos, N’Djamena
(Chad) and Chicago, while additional services were operated to Istanbul
and to Sao Paulo and Curitiba in Brazil. Cargolux’s successful service
to Budapest was boosted and is now operated five times a week. GEOGRAPHICAL ANLYSIS - Area 2 - Area 3 FLEET
With a successfull performance in 2004, Cargolux has further shaped its position as a leader in the worldwide air cargo business, but expects to face increased global competition and sharpened operational constraints through regulatory restrictions. “The challenge, of course, will now be to stay at the top,” Mr. Ogiermann notes. “We have to understand and react to changes in the business environment marked by, among others, continued concentration among forwarders and the emergence of cargo alliances. Our competitiors today are no longer exclusively airlines, but also countries and regions which understand that air cargo flows are a driver of the economy and don’t hesitate to invest in competitive infrastructures in the air and on the ground to capture those flows. In addition to that, our competitiveness is influenced to a large extent by the regulatory environment in which we operate. Sustained efforts to liberalize our industry are a major issue for the future and of vital importance for our profitability and thus also for our contribution to the domestic economy.” Cargolux, based in Luxembourg, is Europe’s largest all-cargo airline, operating a modern fleet of 13 B747-400 freighters on a worldwide network, covering 90 destinations, 57 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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