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Lufthansa Monthly Report 07/2006


Frankfurt (LUFTHANSA) - The Lufthansa Passenger Airlines welcomed almost five million passengers (+4.6%) in July 2006. Available capacity was increased only slightly, by 0.6%, whereas sales were up 1.4% on the year. The passenger load factor rose by 0.7 percentage points to 79.1%.

In the Europe traffic region, the number of passengers grew to 3.8 million (+5.6%). With a rise in sales of 7.7% - supported by the betterFly concept - the 5.2% capacity expansion was exceeded significantly, taking the passenger load factor 1.7 percentage points higher to 70.2%.

In the Americas traffic region, capacity was reduced again (-3.1%) as further capacity was shifted in particular from South America to Asia. Sales were lower by 2.0%, the passenger load factor however rose to 84.7%.

Due to this capacity shift the available capacity in the Asia/Pacific traffic region grew by 1.8 per cent. Sales increased by 2.9% and capacity utilisation improved accordingly - by 0.9 percentage points to 82.9%. Passenger numbers also elevated substantially by 6.6%.

The number of passengers in the Middle East/Africa traffic region was down on the year (-6.6%) again, due mainly to the crisis situation in the region. Capacity was scaled back by 2.1%, and both sales (-6.3%) and capacity utilization (-3.4PP.) fell accordingly.

In July, Lufthansa Cargo carried about 149,000 tonnes (+1.0%) of cargo and mail, and while capacity was reduced by 2.0%, sales showed a 2.9% growth. The cargo load factor rose by 3.1 percentage points to 65.8%. The Asia/Pacific traffic region again showed very positive progress, with cargo tonnage climbing by 9.3% and capacity utilisation by 1.3 percentage points to 71.1%.

The Group's overall load factor rose by 1.5 percentage points to 73.1%.

Lufthansa is expanding its route network
As of 13 September 2006 Lufthansa will fly daily from Munich to São Paulo. From its Munich hub, the airline now serves 100 destinations in 37 countries, including 16 destinations in Asia and America.

As of 1 December 2006, Kolkata (former Calcutta) as the sixth destination in India will be added to Lufthansa's flight schedule. The Indian metropolis will be served directly from Frankfurt three times a week. Thus, the number of flights a week from Germany to India will grow to 45.

Lufthansa Technik and Jazeera Airways signed contract for maintenance support
Kuwaiti private carrier Jazeera Airways has selected Lufthansa Technik AG to support the engines of its growing fleet of Airbus A320 airplanes. The contract has a term of ten years and is valued more than 70 million US dollars.

LSG Sky Chefs selected for strategic partnership with new Bangalore Airport
LSG Sky Chefs has been selected as one of two strategic partners providing Flight Catering Services at the new Bangalore International Airport after an extensive technical and financial evaluation process. The agreement covers a period of 15 years.

Construction of the new airport has already begun and is scheduled to be completed by April 2008. Forecast over the next eight years expects the annual passenger growth to double at least.

Thomas Cook sells subsidiaries
Thomas Cook AG has sold subsidiaries Thomas Cook Overseas Ltd. (the holding for all of the group's non-European activities) and Thomas Cook Lebanon S.A.L. (active in the fields of travel and financial services, Beirut) to Dubai Financial LLC, Dubai (subsidiary of the Dubai Investment Group LLC). With this disinvestment Thomas Cook follows up its strategic alignment of concentrating on the core business in the European market.

Share of foreign investors in Lufthansa exceeds 40%.
Since 3 August 2006, the share of foreign investors in Lufthansa's share capital has reached 40.29%. A share buy-back as provided for in §4 (1) of the German Aviation Compliance Documentation Act (LuftNaSiG) is currently not intended.

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