Lufthansa Cargo swung to a US$87 million operating loss in the second quarter from a $95 million profit a year ago amid a “severe” slump in revenue. Lufthansa Cargo’s revenue in the three months to 30 June fell nearly 40 per cent to $626 million from just over $1 billion a year ago as traffic slumped 16.9 per cent to 366,000 tonnes from 441,000 tonnes. The situation was better in July with only a 4.8 per cent decline for the month year on year, with the carrier transporting 149,000 tonnes of cargo.

In the face of “feeble demand and a collapse in average yields” the German carrier said it will ground six of its 19 MD-11 freighters for at least a year, starting 1 October at the latest and extend and increase shorter working hours for its ground staff to “safeguard earnings.”

“The economic crisis continues to have a drastic effect on the results of the air freight industry,” parent company Lufthansa said. “Compared with last year there are some signs of recovery in terms of falling volumes, but the price erosion persists,” Lufthansa said. “Renewed fuel price rises proved to be an additional burden in the second quarter.”

Overall Lufthansa cargo traffic, including SwissWorldCargo, fell 19.8 per cent in the first half from a year ago to 788,000 tonnes against 983,000 tonnes.

First half losses for the Lufthansa group ballooned to $188 million compared with a $160 million profi t in the same period in 2008.