Lufthansa records strong second quarter results

Lufthansa records strong second quarter results

Lufthansa has reported net profits of €301 million for the three months ending June 30th.

The strong result comes despite being burdened by losses in the “lower triple-digit millions” as a result of the catastrophes in Japan and political unrest in North Africa and soaring fuel costs.

However, the results were below analysts forecasts compiled by Dow Jones Newswires, while had anticipated profits of €318 million.

“Lufthansa remains among the profitable airlines in the world even after six months of strong headwinds,” finance director Stephan Gemkow explained.

The airline expects the situation in Japan to improve but saw additional challenges in high oil prices and “competitive pressure in certain markets”.

Lufthansa also operates the Swiss, Austrian Airlines and BMI brands.

“The challenges for Lufthansa remain in the high oil price and the competitive pressure in certain markets,” explained a statement from the airline.

“Deutsche Lufthansa AG confirmed its outlook for the full year based on the improved result during the first half of the year and the prospect of a positive development of business during the coming six months.

“The Group consequently continues to expect a year-on-year improvement of revenue and operating result for 2011.”

Airbus

Earlier this week Lufthansa confirmed an order for 30 A320neo-family aircraft worth $2.8 billion at list prices with manufacturer Airbus.

Lufthansa announced the provisional order in March in a boost for the upgraded model of Airbus’s A320 narrow body aircraft due to enter service in mid-decade with new engines.

Lufthansa is buying 25 150-seat A320neo aircraft and five 185-seat A321neo aircraft.