Lufthansa increases profit in airline operations despite oil price

July 31, 2008 · Filed Under Airlines, airline industry

FRANKFURT - Lufthansa expects its operating profit to jump in the first half of the year for the rest of the year with a weaker development in the passenger business. It should not be ruled out that the overall economic development dampening effect on the demand for air travel impact, says the annual report for the first half, which was published on Wednesday.

In a persistently high oil prices will the core business Passage to miss last year’s results, even if the turnover is growing. However, the company’s goal, while operating profit at group level to the record level of 1378 billion euros from the previous year anzuknüpfen. Lufthansa shares reacted in the morning with a price gain on the news. The paper presented shortly after the start of trading by 1.3 percent to 15.30 euros. A dealer According to the price mainly by falling oil prices today are influenced.

In the first half year, the fuel costs of the Group by almost half to nearly 2.5 billion euro climbed. The increase was partly due to the Swiss airline Swiss, which in the same period last year but not included in the consolidated figures received. For the full year, the DAX companies with fuel costs amounting to 5.56 billion euros after 3.86 billion euros a year earlier. Last Lufthansa had yet 5.63 billion euros forecast.

Lufthansa had already on Tuesday after close of the market data for the first half of the year. The biggest German airline continued strauchelnden from their competitors. The operating profit grew from 486 to 705 million euros, however, failed the expectations of industry experts.

From the financial news agency dpa-AFX surveyed analysts had, on average, with 709.8 million euros expected. The increase was partly due to the consolidation of the Swiss, the first since the third quarter of 2007 in the group figures received. Turnover grew as expected from 10.1 to 12.1 billion euros. The bottom line fell in the DAX group had a decline in profits after the special revenue earnings in the previous year to 992 million euros upward. With 402 million euro failed the current surplus, however, the analysts forecast of 414.6 million euros.

The business turnover increased its passage in the first half of the year as a result of Swiss-consolidation by 28 percent to 8898 billion euros. The operating result rose by 25.5 percent to 349 million euros. The cargo subsidiary Lufthansa Cargo increased its turnover by 8.5 percent to 1421 billion euros. The operating profit almost quadrupled from 29 to 114 million euros. Unlike the passenger business expects Lufthansa Cargo for the full year, with sales and earnings.

For 2008, the management in addition to the chances of a recurrence of operational record profit but also risks. This would be in a “renewed and sustained increase in fuel prices and a continued decline in economic growth. The impact of the strike action the Board as a risk factor. The consequences were not yet in sight.

For the full year, the Board reaffirmed its forecast. It was unchanged assume that the company 2008 on operating income of the previous year tie. At the time, Lufthansa had a record value of 1.4 billion euros eingeflogen. Risks but were in a “renewed and sustained increase in fuel prices, a sustained economic downturn and is still not foreseeable effects of strikes in the current round of collective bargaining.