LUFTHANSA GROUP REPORTED INCREASED PROFITS

Denise Chen - Nov 4, 2013
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The Lufthansa Group has increased 47 percent of its adjusted earnings in the first nine months of 2013. Before restructuring expenses of the future program score (168 million Euros) and project expenses (30 million Euros) for product improvements, the Group reached an operative profit of an estimated 860 million Euros in the timeframe from January until September 2013, which is about 280 million Euros more than last year.

In addition to the impact earnings from project and restructuring expenses, the operative profit in the first nine months amount to an estimated 660 million Euros. During the same time frame, an operative result of 907 million Euros was generated. However, one has to take into account the transfer of operations with Austrian Airlines and the compensation of pension liabilities sold to the IGA British Midland for a onetime special effect of a total of 325 million dollars.

The Lufthansa Group turnover barely changed by 22.8 billion Euros, even with the negative increased exchange rate effects and despite the reduction of flight numbers, the offer (in seat kilometers) and the amount of passengers that remained steady. The load factor of the flights increased and according to Lufthansa CEO Christoph Franz, “in particular the business travelers decreased the costs.”

For the whole year of 2013, Christoph Franz expects an operative profit of 600 and 700 million Euros (which is much better than the 524 million Euros from the previous year). The contained restructuring and project expenses altogether amount to 300 million Euros. Adjusted to this item, the operative profit shall be between 900 and 1 billion Euros. The detailed interim reports for the first three quarters will be published on October 31, 2013.

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