Luxembourg-based cargo airline Cargolux has confirmed it will report a loss for 2011 ahead of the publication of its annual results on March 28.
A combination of the fall in air freight volumes, increased global capacity, a hike in jet fuel prices and shaky global economic conditions pushed Cargolux into the red in 2011, reports cargo and logistics news website www.ifw-net.com.
Cargolux CEO Frank Reimen said the carrier will report a loss for last year as a result, but not on the scale of 2008 and 2009, when it made losses of US$80.5m and US$202m, respectively.
Reimen added that Cargolux is prepared for the worst in 2012, and has reached an agreement with staff unions on a recruitment freeze, early retirements and unpaid leave.
Cargolux has also reduced the size of its fleet, and since January no longer operates leased aircraft, and has cut services on some routes, notably to Asia, the website said.
Earlier this year, Cargolux appointed Richard Forson, formerly of Qatar Airways, as its new CFO.