Lufthansa results 2008Lufthansa profits shrink in 2008
Weniger Gewinn für LH<br /> The Lufthansa Group increased its offer and sales during the past business year. The Group posted operating profits of around 1.35 billion euros. The Group profit was 599 million euros; Last year’s figure had been 1.66 billion euros, however, it had also included 585 million euros of profit from extraordinary items.
Whereas the worldwide economic slowdown has particularly been felt in the Passenger and Catering business segments, the operating results of the remaining business segments developed positively. In the Passenger Business segment, fuel costs at record levels, strike-related losses and the decline in demand caused by the state of the world economy during the second half of the year, all had a negative effect on the result. However, the attractive premium products, a demand-oriented offer strategy and the successful integration of SWISS all played decisive roles in ensuring a year-on-year growth in sales, Lufthansa said.
The Logistics business segment achieved a significantly improved operating result during the past year. In the MRO business segment, LHT extended its advantage as the leading provider of maintenance, repair and overhaul services for civilian aircraft and recorded a year-on-year rise in its operating result. The IT Services business segment was able to profit from targeted measures aimed at improving productivity and achieved a significantly improved operating result. Despite the introduction of cost reducing and productivity improving measures, the operating result of the Catering business segment was below the figure of the previous year.
One of the most challenging years in its history lies ahead of the aviation industry said the Lufthansa Chairman and CEO looking ahead to 2009. It is not possible to forecast the duration and extent of the economic crisis. “Lufthansa stands for reliability and foresight. We cannot and will not rest on the laurels of last year’s result in this highly challenging economic environment. Lufthansa will continue to keep an eye on a solid balance sheet and maintain its financial and operational flexibility. We will continue to adjust our offer to the current demand situation.“
During the year 2008, the Lufthansa Group generated revenues totalling 24.9 billion euros, a year-on-year increase of 10.9 per cent. The traffic revenue rose by 13.8 per cent to 20 billion euros. Besides the full consolidation of SWISS in the first half of 2008, this was mainly due to the increased passenger figures with currency adjusted higher average revenues in the Passenger Transportation business segment. During the reporting period, the Group’s operating income increased by altogether 12.1 per cent to 27 billion euros. Operating expenses rose to 25.6 billion euros during the past year, mainly as a result of the rise in fuel costs to 5.4 billion euros. This was equivalent to an increase of 39.3 per cent. This increase was due to price and quantity-related factors, as well as the change in the scope of consolidation with the full consolidation of SWISS in the first half of 2008.