DEUTSCHE Lufthansa has posted an operating profit of €159 million for the second quarter of 2010, more than tripling the figure for the same period last year.
The recovery in demand, particularly in cargo and intercontinental traffic, and the efforts to reduce costs in all areas of the group played decisive roles in recording the positive result. However, the severe winter, the strike by the pilots’ union, the airspace lockdown after the volcano eruption on Iceland and the continued slump in prices all took their toll and had negative effects during the first six months of the year.
The Lufthansa Group therefore posted an operating loss of €171 million ($218,644,112) for the first half of the year, €179 million (228,864,364) less than for the same period last year.
Speaking at the presentation of the first-half results, Lufthansa executive board member and CFO Stephan Gemkow said: “There is a noticeable recovery in first and business-class bookings in the passenger business and the revenue from long-haul traffic. A good example of this is our A380 with the new frst class, which has had an excellent load factor in all classes since entering scheduled service on the Frankfurt–Tokyo route. Nevertheless, despite our delight with the very good second quarter, we have not yet succeeded in matching the results of earlier years.
“We shall continue with the sustained implementation of our cost-cutting measures, particularly in the face of the current slump in prices and altered demand in short-haul traffic.“
Although the Passenger Airline Group posted an operating profit for the second quarter, the business segment ended the first six months with a significant operating loss of €342 million ($437,360,299), of which -€203 million ($259,654,240) was accounted for by Lufthansa Passenger Airlines. The Climb 2011 programme to safeguard earnings at Lufthansa Passenger Airlines will therefore continue to be consistently implemented and the same applies for the restructuring measures that are progressing according to plan. Austrian Airlines contributed a loss of €70 million ($89,560,106) to the operating result of the Passenger Airline Group, bmi and Germanwings contributed losses of €93 million ($118,986,643) and €39 million ($49,890,784) respectively; while Swiss made a positive contribution of €54 million ($69,074,541).
During the first six months of 2010, the Lufthansa Group generated revenues totalling €12.6 billion ($16.1 billion), equivalent to a year-on-year increase of 23.5 per cent. The traffic revenue rose by 30 per cent to €7.8 billion ($9.9 billion). During the reporting period, the group’s operating income increased by 22.2 per cent to €14.2 billion ($18.1 billion).
Lufthansa’s capital expenditure during the reporting period totalled €974 million ($1,244,955,734), of which €184 million ($235,189,549) was spent on the expansion and modernisation of the fleet. At the close of the first half, the group’s net indebtedness stood at €1.8 billion ($2.3 billion). In comparison to the figure at the end of 2009, portfolio measures saw the group’s equity ratio increase to 24.3 per cent.