German Carrier to Phase Out Older Jets at Faster Pace
Deutsche Lufthansa AG reported an upward trend in earnings performance in the second quarter of this year. In the period from April to June, the Group earned an operating profit of EUR 361m, nearly making up the loss sustained in the first quarter.
Positive factors included consistent capacity and yield management in passenger and cargo traffic, clear restructuring successes at Austrian Airlines and good earnings contributions from the service companies. In the first six months of the year, the latter all increased their operating profit in comparison with the same period last year.
High fuel costs, persistent price pressure, the air traffic tax payable in Germany and Austria and fees for emissions trading certificates all diminished the Group’s profit, however. At the end of the first half-year 2012, the Company recognised an operating result of EUR -20m, EUR 134m less than in the same period last year.
The Lufthansa Group increased its revenue by six per cent to EUR 14.5bn. After six months the net loss for the period came to EUR 168m, which represents an improvement of EUR 38m on last year. This includes a result from discontinued operations of EUR 36m, reflecting the closing of the sale of British Midland Ltd.
Presenting the half-year figures, Simone Menne, Chief Financial Officer and responsible for Aviation Services of Deutsche Lufthansa AG as of 1 July 2012, said:
“By acting systematically, we want to ensure that we can continue to invest for our customers, secure and create jobs for our staff and maintain our profitable growth. We cannot avoid taking some unpleasant steps, but they will not comprise quality. The positive earnings performance and the lower unit costs in the second quarter give us confidence that it is worth the effort.” As part of its SCORE programme, the Group wants to improve its operating result compared with the year 2011 by at least EUR 1.5bn by the end of 2014.
Lufthansa German Airlines is using the capacity reduction to phase out older aircraft ahead of schedule and for seasonal adjustments to the flight timetable.