It has been a strong year for Lufthansa, as the company ended 2010 with an operating profit of €876 million ($1.2 billion), equivalent to a more than fivefold increase on the previous year’s figure of €130 million ($185 million). The Group’s net profit rose to €1.1 billion ($1.5 billion), which marked an increase of €1.2 billion ($1.7 billion).
Peter Pollock, general manager UAE and director Gulf, Lufthansa German Airlines, said: “Yes, we have seen very good results in 2010, largely contributed to by the upswing in business in the second half of the year. Lufthansa, as a global carrier, is well postitioned in the industry today and our core segment, the corporates, have fuelled this positive development. We also benefit from the network, our core competance and our product.
“The Middle East too saw very good performances. The target for the UAE market in 2010 was very ambitious and we managed to achieve the double-digit growth we were looking for. In the Middle East we have witnessed profitability in all our routes and this is a good contributi on to the overall success of Lufthansa in 2010.”
The recent political disturbances in the region have had some effect on the airline‘s operations, but Pollock was quick to add that markets like Dubai in turn saw more demand. “Our customers from Europe are now travelling to the UAE instead of Egypt or Tunisia. With better performances in the UAE, Kuwait, Qatar and Oman, we believe that the this positive trend will continue in 2011 and we can sustain this double-digit growth yet again,“ he added.
Lufthansa began its daily Abu Dhabi to Frankfurt route last November and Pollock believes this has fuelled the positive growth in the region. “In 2011, we will continue to look for new opportunities in the region. The new Abu Dhabi to Frankfurt route saw an increase of appro ximately 18 per cent in bookings and, if this positive trend continues, we would change this to a daily turnaround, which would be a logical step for us.
“We are also witnessing an increase in market volume to Europe with almsot 10 per cent increase in bookings. It is clearly a growing market.“
Looking ahead, Pollock wants to launch a non-stop to Doha, which currently operates via Riyadh. He is also keen to continue flying into North Africa, but with capacities reduced or changes if required.
“We also invested a lot into Saudi Arabia last year. We switched to a B747, introduced a non-stop flight to Jeddah and started the non-stop Munich to Riyadh route,“ he said.
With strong demand, Lufthansa also expanded its private jet service, since the beginning of the year the company has sold seven private jets into the region. Pollock added: “It is amazing to see that positive developement and that there is enough demand in the market. It also shows that the brand is well positioned in this niche market. For customers travelling to Europe, the Lufthansa Private Jet can offer great flexibitlity.“ The service is now being expanded in an exclusive cooperation with NetJets Europe.
Another new initiaive started is the Atlantic Plus Plus, a joint venture between Lufthansa, United Airlines, BMI, Continenntal and Air Canada. “This is the strongest joint venture on the North Atlantic which allows the airlines to co-ordinate their fares and sales and share revenues,” said Pollock. “So, it no longer matters if the passenger is flying Lufthansa or Continental or United, as long as the passenger is flying the A++.
“We have also streamlined and optimised our whole network, so a passenger can fly from Dubai to Frankfurt on Lufthansa and then continue on United to Washington and then return on Continental from Houston to Munich and back on Lufthansa.
“We plan to grow this network and will add Asutrian Airlines and Swiss to the network from July 1 thus giving a larger network and more value to the passenger.“
In 2010, the airline also set new standards in premium travel when it unveiled a new first class cabin on its A380 fleet. Continuing that trend, from April to November, Lufthansa will comple-tely revamp ten Boeing 747-400s, resulting in a quieter and more exclusive atmosphere in first class, which includes just eight seats.