LUFTHANSA CARGO POSTS FIRST-QUARTER LOSS, 1998 PROFIT

LUFTHANSA CARGO POSTS FIRST-QUARTER LOSS, 1998 PROFIT

   Lufthansa Cargo reported a first-quarter loss of Deustch marks 28
million in what traditionally is the cargo industry’s weakest period.
   Load factor fell to 66.6 percent, as an 8.1 percent rise in capacity
muted a 6 percent traffic increase to 1.6 billion tons kilometers. Revenue
was flat at DM 916 million.
   For calendar year 1998, Lufthansa Cargo posted net profit of DM 271
million ($148 million), compared to net income before taxes of DM 211
million a year earlier.
   Last year’s gain marks the second straight profitable year for the
carrier, an independent subsidiary of the parent to Lufthansa German
Airlines.
   Total 1998 revenue increased slightly to DM 4.15 billion from DM 4.11
billion, the carrier said. Cargo traffic grew 2.2 percent to 6.7 billion
ton kilometers flown, hampered by economic downturns in Asia, Brazil and
Russia.
   Cargo capacity offered by Lufthansa, the world’s largest international
air freight carrier, increased by 4.6 percent to 10 billion ton kilometers.
Load factor was 66.8 percent.