Lufthansa Cargo lays out growth plans

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Lufthansa Cargo expects to more than triple its earnings over the next two years as its parent group's "Score" efficiency programme takes effect.

The German freight airline aims to improve its result by at least €70 million ($90.7 million) in the period until the end of 2014.

However, that increase will be over its the €249 million operating profit it recorded in 2011, rather than the subdued result of €104 million in 2012.

Around two-thirds of the €70 million uplift will be achieved through cost cuts, while higher sales should account for the remainder.

No large-scale cost-cutting initiatives are planned, says chief executive Karl Ulrich Garnadt, but "many small measures" will be introduced.

He adds, however, that the combined savings potential of all the projects under consideration is several times higher than the €70 million target.

Job cuts could form part of the overall plan, says Martin Schmitt, chief financial officer and head of human resources, while not disclosing any further details.

Schmitt says measures introduced by Lufthansa Group's €1.5 billion Score efficiency programme - which was launched in early 2012 - generated savings of around €32.8 million for Lufthansa Cargo last year.

Future projects include the integration of Lufthansa Cargo Charter Agency - a standalone subsidiary created to market ad hoc cargo capacity - into the freight carrier's main operations by April 2013.

The airline also wants to improve maintenance support for its Boeing MD-11 freighters and has agreed lower fees with Lufthansa Technik for MRO costs on the aircraft's General Electric CF6 engines.

It will additionally launch new spacialised products as a means of increasing sales.

Both executives were speaking at the carrier's results presentation on 21 March.