Lufthansa profit triples to 612m

Lufthansa Reports Strong Financial Performance

Aviation group Lufthansa has announced an operating profit of €612m for the nine months to end-September and says its full-year result will exceed €800m.

The airline’s profit is a result of positive demand in passenger and freight traffic, as well as the success of the company’s cost cutting programmes.

Overcoming Challenges in the First Half of the Year

The first half of the year was marred by extreme weather, pilots’ strikes and airspace lockdowns leading to an operating loss but the group has turned this around with a third quarter profit of €783m.

In the nine-month period from January to September, revenue increased by €4bn to €20.2bn.

Chairman and CEO Wolfgang Mayrhuber said Lufthansa had “flown though the economic and financial crisis”.

“The good result is the consequence of a targeted and determined reaction, and a remarkable team performance. A strong airline group and optimized cost structures are success factors that will also pay off in the future,” he said.

Strong Performance Across Business Segments

Strong results emerged from all the group’s business segments. The Passenger Airline Group recorded an operating result of €218m during the first nine months of the year. Austrian Airline and bmi posted small operating profit for the first time in the third quarter.

All of the airlines are benefiting from the efforts that were invested in increasing efficiency and reducing costs, as well as the acceleration in demand, said Lufthansa today.

Continued Focus on Cost Reduction and Efficiency

Mayrhuber said that all cost-cutting programmes will continue to be implemented because of intense global competition and short-haul flight price pressure.

The logistics business segment recorded an operating profit of €230m, while the MRO business segment recorded profits of €211m. IT services and catering also noted profits of €12m and €50m respectively.

In a statement, the Lufthansa board said, “We have fulfilled our promise to not only render short-term crisis management, but to also always look ahead, and shape the future. In doing so, we have stuck to our principles, that are, solid financial structures, our orientation to quality and the customer, innovations and long-term increases in value.”

Future Challenges and Outlook

For the future, the risks lie in an economic slowdown, in the possible negative influence on business of the air traffic tax and in a possible high increase in fuel prices, said the company.