Cargolux has reacted to the further increase in fuel prices and will adapt its fuel surcharge on all cargo shipments on May 5, 2006. The decision reflects the rising costs that Cargolux is exposed to.

The current level of the fuel surcharge will be adjusted to ’ 0.55 per kilo, or its equivalent in local currency. The charge is based on actual weight and will be implemented across the Cargolux network according to local legislation and wherever it is legally permitted.

Cargolux consolidated income up 19% to US$1.45 billion.

Following a strong performance in 2004, the worldwide air cargo industry only showed a modest average growth of about 2.5% in 2005. Again, Cargolux was able to outperform the market and increase its market share. Based on IATA statistics, the company was the 7th largest air cargo carrier worldwide. The company also remains the biggest all-cargo carrier in Europe.

In 2005, Cargolux carried 644,613 tons, up 8.3%. Ton-kilometers flown (FTKs) increased by 3.5% to 5,292 million. Capacity ’ measured by available ton-kilometers (ATKs) ’ increased by 7% due mainly to leased-in capacity which represented 13.3% of the total ATK’s for the year. VCV ’ the company’s 14th 747-400F christened ‘Walferdange’ - joined the fleet at the end of November.