Andrew Doyle/MUNICH
In contrast to its European rivals, Lufthansa Group expects to deliver a healthy financial performance this year, boosted by a strong first half in which it lifted its operating result by nearly 18% to DM683 million ($313 million). The German company has since revised its full-year forecast upwards by one third, predicting it will surpass last year's DM1.3 billion operating result by 15%.
The performance comes despite a 64.4%, or DM479 million, increase in fuel costs, which Lufthansa says "would have been even more dramatic had it not been for our comprehensive fuel price hedging measures, which are without parallel in the airline industry."
First half group revenue was up 18.8% to DM13.4 billion, with traffic revenues rising 14.7%, cargo by 20.4%, and other segments such as catering and ground services by over 40%, thanks to the consolidation of recent acquisitions.
Total passenger numbers rose by 7.1% to 22.6 million during the first six months, pushing overall seat load factor to a record 73.2%. Total operating expenses were up 19.8%.
"Our dual strategies of providing a full range of services to the customer as an all-round aviation group and leading our industry in the field of e-business are paying off," says Lufthansa chairman Jürgen Weber.
The disposal of shares in the Amadeus reservation system for DM739 million pushed the first half pre-tax net profit to DM1.05 billion - up 82.1% on last year.
n Lufthansa board member for route network management and marketing Ralf Teckentrup says in an interview with German financial daily Handelsblatt that co-operation with, and possible equity investment in, an existing low-cost airline would be "an interesting option" for the company.
Source: Flight International
