Lufthansa records near €1bn in profits for 2014

Lufthansa records near €1bn in profits for 2014

Deutsche Lufthansa has achieved its operating-result objective for 2014, reporting €954 million operating profit for the year.

This was a €255 million, or 37 per cent, improvement on the prior-year result.

Following a revision of its original projections owing to negative yield trends and the extraordinary impact of strike action, the company had projected an operating profit for the year of €1 billion in June 2014, provided no additional costs were incurred through further industrial action.     

Total Lufthansa Group revenue for the year remained broadly unchanged at around €30 billion, despite the substantial yield declines in the passenger transport segment.

Results were boosted by a €364 million decline in fuel costs (deriving largely from fuel price reductions) and a €351 million benefit from the changes that were made to the Lufthansa Group’s aircraft and spare powerplant depreciation policy in 2014. 

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Strike actions by pilots and security personnel reduced the 2014 operating result by a total of €232 million (€62 million thereof in December alone).

The adjusted operating result, which excludes the non-recurring effects of SCORE-related restructuring costs and project costs, amounted to €1.2 billion (compared to €EUR 1.0 billion for 2013).

The high investments of €2.8 billion were largely concerned with fleet renewals and cabin interior enhancements.   

“Our results for 2014 show us clearly where we currently stand,” said Carsten Spohr, chairman of the executive board and chief executive of Deutsche Lufthansa.

“On the one hand, all the business segments of the Lufthansa Group are profitable and, with an operating profit of almost €1 billion, we achieved our projection in a far-from-easy year.

“At the same time, though, with our high investments in modern aircraft and premium services, we simply have to further increase our operating profit.

“For this we need competitive structures; and that’s what we continue to consistently work on.”