Lufthansa and SWC announce new cargo pricing structure to take effect from this winter

Lufthansa Cargo and Swiss WorldCargo take on a new pricing with effecting from the winter flight schedule, when the pricing of both airlines will consist of just two constituents a net rate and an air freight price that will be much lesser than the current prices.

The two carriers, both parts of the Lufthansa Group, believed the different prices currently in place for fuel and security would be reduced. They said that as the new air freight price will be much lesser than the total amount of the present prices, the net rates will be readjusted so that total prices of shipping will remain at existing stages.

The change follows pressure from dispatching and shipper groups for carriers  give unassuming, and more clear pricing, which has directed to assessments by some other airlines this year to decrease prices in favour of all in pricing. A number of customers have seen that since the moves have coincided with a decrease in fuel prices and a linked expectation of a visible decrease in fuel prices, the modifications have veiled the effects of the profits they expected to realize in terms of dropping fuel prices.

Carriers that have already elected to introduce all-in pricing this year include Emirates cargo, Qatar Airways, IAG, and SAS. Lufthansa Cargo was considering that  whether to acclimate its pricing structure and expected to make a change later this summer. However, the expectation had been that Lufthansa Cargo would also elect for an all in pricing structure rather than the mixed  model.

Lufthansa Cargo’s director for product and sales, Alexis von Hoensbroech  stated that according to customers of Lufthansa the new pricing structure is simple and confirms that Lufthansa is in glowing position for the future, given the changes that the markets have undergone.

Chief cargo officer of Swiss Oliver Evans points out that the new air  freight price reveals the instability of external cost factors beyond the airlines’ control, such as fuel, currency rates, airport duties and fees. This would not have been the situation with an all in rate, which both airlines revised in detail. An all-in rate would have  been less apparent.

According to the carriers the changed pricing structure will go into effect in most global markets. However, for legitimate explanations, the current price structure will remain in place in those countries where pricing is an issue of government regulation  for example in  Japan and Hong Kong.