In face of rising kerosene prices, Lufthansa Cargo raised its fuel surcharge from 0.30 to 0.35 euro per kilo of actual freight weight, effective 21 March 2005. Prices for crude oil and crude oil products have for weeks stood at a record level. Increases in the fuel surcharge are governed by a methodology based on Lufthansa Cargo's Fuel Price Index which is based on the average price of aviation fuel in the world's five, key spot markets.

Once the index exceeds a specific benchmark for two consecutive weeks, the logistics services provider in the Lufthansa Group adjusts the fuel surcharge accordingly upwards.

The methodology and transparency of the Fuel Price Index has become a major indicator in the airfreight business, allowing customers to understand how adjustments to the surcharge are calculated. Updates and further details of the methodology are available on our website: www.lufthansa-cargo.com.

Lufthansa Cargo is also raising cargo rates on 1 April 2005. The increase will be in the order of a single-digit per cent and will vary according to region or route.

"In face of underlying market conditions, we feel compelled to make differentiated rate adjustments. We conducted talks about this with our major customers earlier this year and explained our position," said Dr. Roland Schütze, Senior Vice President Worldwide Sales at Lufthansa Cargo.

The company will communicate details of the rates rise to customers in the next few days.