LUFTHANSA AND Scandinavian Airline Systems (SAS) have continued the run of strong airline performances coming out of Europe, both carriers reporting a surge in profits for the first half of the year.
Following the lead already set by British Airways and KLM, Lufthansa posted record load factors of 69.8%, helped by an 11% increase in passenger numbers and 18% in cargo tonnes.
The growth helped the German group raise its first half -year pre-tax profits by 40% to DM189 million ($136 million). Lufthansa continues to be hampered by the strength of the deutschmark, however. The currency effect helped push yields down by 5% on passenger services and by 8% for cargo.
Lufthansa also says that foreign exchange losses and provisions for leasing liabilities totalled DM150 million over the half, but were largely offset by aircraft sales.
The SAS airline also saw a surge in profits, rising tenfold to SKr956 million ($132 million), although unlike its German alliance partner, the recovery sprang not from growth but from 1994's consolidation.
SAS reports that while passenger numbers declined slightly, yields were up by 7%, helped by healthy demand for business travel. The airline says that its underlying operating costs have fallen by 3%.
Source: Flight International
