Lufthansa recovers first quarter losses

3rd Aug 2012
Lufthansa recovers first quarter losses

Lufthansa has reported an upward trend in earnings performance in the second quarter, earning an operating profit of €361 million, nearly making up the loss sustained in the first quarter.

Positive factors included consistent capacity and yield management in passenger and cargo traffic, clear restructuring successes at Austrian Airlines and good earnings contributions from the service companies.

In the first six months of the year, the latter all increased their operating profit in comparison with the same period last year.

High fuel costs, persistent price pressure, the air traffic tax payable in Germany and Austria and fees for emissions trading certificates all diminished the group’s profit, however.

At the end of the first half-year 2012, the company recognised an operating loss of €20 million, some €134 million less than in the same period last year.

The Lufthansa Group increased its revenue by six per cent to 14.5 billion for the first half.

After six months the net loss for the period came to €168 million, which represents an improvement of €38 million on last year.

This includes a result from discontinued operations of €36 million, reflecting the closing of the sale of British Midland.

Presenting the half-year figures, Simone Menne, chief financial, said: “By acting systematically, we want to ensure that we can continue to invest for our customers, secure and create jobs for our staff and maintain our profitable growth.

“We cannot avoid taking some unpleasant steps, but they will not comprise quality. The positive earnings performance and the lower unit costs in the second quarter give us confidence that it is worth the effort.”


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