SAS Cargo racked up record revenue of 356 million euros ($423.3 million) and pre-tax profit of $8.7 million in 2005.

The carrier, a unit of Denmark's SAS Group, said the improved results came despite what it termed "huge" overcapacity and a substantial imbalance in the flow of goods between Asia and Europe.

Increasingly keen competition pushed yield down to 25 cents per kilo from 26 cents a year ago.

"The result in 2005 is the best ever for SAS Cargo, however we need to be better at earning money," said Kenneth Marx, president and chief executive of SAS Cargo Group. "And we will do this by increasing focus on our core business and continue to develop our route network and capacity."

The carrier in 2005 inked cargo capacity agreements with the WOW partners Lufthansa and Singapore Airlines, and with Korean Air and Emirates.

SAS Cargo also completed its first belly capacity agreement with an airline outside the SAS Group, in a deal to manage capacity for Sterling.