2008-11-03 - Lufthansa outlookLufthansa profits but carefull outlook
Vorsichtige Prognosen von Lufthansa<br /> The Lufthansa Group increased its offer and sales during the first nine months of the year, defying the difficult economic environment. The Group achieved an operating profit of 984 million euros after the third quarter.
This was equivalent to a lesser result of 101 million euros in comparison with the same period the previous year. The net profit for the term was reported at 551 million euros; during the same period last year this figure was at 1.6 billion euros; however, it included 503 million euros of profit from the sale of the shares in Thomas Cook, as well as book gains of 82 million euros from the repurchase of own stock by WAM Akquisition S.A. "This is a respectable result taking into consideration the considerable strains being felt as a result of the ongoing crisis in the financial markets and the overall economic situation. During these critical times, our focus is naturally on safeguarding our result. We possess the necessary flexibility and operational adaptability, and will be able to steer our company according to the demands of the market. In addition, we are working on our productivity, our measures to improve fuel consumption and the reduction of external costs. All of these factors and the outstanding team performance by the Group's employees contribute to stability and offer us the opportunity to thrust forward into new openings", commented Lufthansa Chairman and CEO Wolfgang Mayrhuber, speaking at the presentation of the third-quarter.
Whereas the worldwide economic slowdown has particularly been felt in the Passenger and Catering business segments, the operating results of the remaining Logistics, MRO and IT Services business segments have developed positively.
In the Passenger Business segment, the sharp rise in fuel costs and strike-related losses, as well as the decline in demand caused by the state of the world economy, all had negative influences on the result. However, the attractive premium products, the selective expansion of the route network and the successful integration of SWISS all played decisive roles in ensuring sales growth in comparison with the same period last year. Mayrhuber stressed that: "We will continue to work on improving our offer with the expansion of our airline system and with our strong alliances. Crises are often the starting points for structural changes and we want to seize the opportunities that will present themselves to us in this situation to ensure the long-term consolidation of our position, whilst still maintaining our financial basis."
Operating expenses rose to 18.9 billion euros during the first nine months of the year, mainly as a result of the rise in fuel costs to 4.1 billion euros. This was equivalent to an increase of 48.9 per cent. This increase was due to price and quantity-related factors, as well as the change in the scope of consolidation. The Group recorded an operating result of 984 million euros after the third quarter, 101 million euros less in comparison with the same period the previous year. This can mainly be attributed to the negative developments in the Passenger Transportation business segment. The Group posted a result of 551 million euros. During the same period last year this figure was at 1.6 billion euros, however, it included 503 million euros of profit from the sale of the shares in Thomas Cook, as well as book gains of 82 million euros from the repurchase of own stock by WAM Akquisition S.A.