Exceptional earnings increase Group result to 554 million euros
Lufthansa continues to climb and records further distinct increases in traffic figures and results in an improved economic environment during the first quarter. At 36 million euros, the Lufthansa Group recorded a positive first-quarter operating result for the first time after four years. “The figures speak for themselves”, said Lufthansa Chairman and CEO Wolfgang Mayrhuber, when presenting the quarterly figures. “The Group is doing well and will continue to maintain our successful course. The success of the company is based on the strong customer orientation of all our staff, successful cost management and the company’s solid financial structure.”
Amidst hard-fought competition, the business segment Passenger Transportation made a considerable contribution to the improvement of the result. Decisive factors were the positive development in the traffic region Europe, the expansion of the route network and the successful marketing of the betterFly fares. The high demand in intercontinental traffic and for premium products also played a role in Lufthansa’s good performance during the first three months of the year. “Our course is clear: we want to continue to grow in profitability. This is why we recently ordered 45 of the most modern aircraft in the world for the expansion and modernization of our regional fleet. We want to continue to convince through quality and performance and also in future justify the confidence of our customers,” said Wolfgang Mayrhuber and added that Lufthansa will continue to offer attractive prices coupled with the highest quality.
The Group result in the first quarter rose to 554 million euros. Mayrhuber explained “the company is focussed and has continued to maintain its clear orientation towards the core competences.” The agreement that was concluded with KarstadtQuelle AG in December 2006, concerning the sale of Thomas Cook AG, came into effect during the first quarter. The Lufthansa Group achieved a profit of 499 million euros from the sale of its shares in Thomas Cook.
For the 2007 business year Lufthansa expects an operating result that will be higher than that of the previous year. The Group has targeted an operating result of one billion euros and the Lufthansa Chairman went on to add that, “if the current positive framework conditions remain intact, then we will already succeed in achieving this figure in 2007.”
First-quarter figures 2007
During the first three months of the year, Lufthansa Group revenues rose to 4.7 billion euros, equivalent to a year-on-year rise of 5.6 per cent. Traffic revenue was up by 6.1 per cent to 3.6 billion euros thanks to the expansion of sales and the stable average revenue in the business segment, Passenger Transportation.
The rise of operating expenses by 3.8 per cent to 5.0 billion euros was disproportionately lower than the increase in revenues. Aside from the higher expenditure on technology, the rise in expenses can principally be attributed to increased charges due to the greater volume of short haul traffic. The Group’s fuel costs remained on the same level as the previous year at 752 million euros.
The first-quarter operating result improved by 111 million euros to 36 million euros. The Group result is 554 million euros, compared to -98 million euros during the same period last year. This includes the profit of 499 million euros from the sale of the shares in Thomas Cook.
Lufthansa’s capital expenditure during the term totalled 470 million euros, of which 357 million euros were spent on the expansion and modernization of the fleet. The cash flow from operating activities amounted to 529 million euros. Net liquidity stood at 162 million euros at the close of the first quarter. This does not include the payment for the sold shares in Thomas Cook that occurred in April.
