Cargolux results slammed by antitrust ruling
Despite increased revenue and market share, Cargolux sank to a net loss of US$61 million as a result of the recent US Department of Justice ruling against the firm, which has cost the Luxembourg-based all-cargo carrier $119 million over five years. However, the full total had to be charged against the company’s 2008 results.
On a more positive note, Cargolux performed well in what was a tough year for the industry. It increased revenues by 18% and ended the year with operational profits of US$55 million, despite a heavy fuel bill of $934 million, about 47% of total costs.
“With the US and other cases settled, or close to settlement and/or adequately provisioned for in the Company’s accounts, most of this unpleasant overhang seems now to be removed and the Company can focus a 100% on managing the business,” said Cargolux chairman Marc Hoffman, in the introduction to the firm’s annual report.
During the course of 2008, Cargolux added Cairo to its network and also expanded frequencies to Doha. As a launch customer for the 747-8F, the carrier expects to receive this delayed type somewhere towards the tail-end of 2010.