Despite early signs of a recovery, Lufthansa Cargo is reportedly planning to reduce its workforce by 10 per cent in 2010 in response to the steep declines in freight revenue and traffic in 2009 which pushed Lufthansa Cargo US$300 million into the red in the first nine months of the year from a $240 million profit in the same period in 2008.

Europe’s second largest scheduled cargo carrier said it will trim around 450 jobs worldwide through voluntary early retirement, severance schemes and part time work. Although the air cargo market recovered toward the end of 2009, Lufthansa Cargo is none-theless expected to post a fourth quarter loss when parent company Lufthansa publishes its full year figures on 11 March.

Lufthansa Cargo saw cargo traffic rise by 18.6 per cent in January from a year earlier to 114,000 tonnes on surging Asian shipments to Europe.