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Lufthansa Group sees difficulty in achieving profits for passenger airlines, cargo to be profitable

4-May-2012 1:35 PM

Lufthansa Group revenue up 6% - financial highlights for three months ended 31-Mar-2012:

  • Total revenue: EUR6619 million, +5.6% year-on-year;
    • Passenger Airline Group: EUR5040 million, +7.7%;
      • Lufthansa Passenger Airlines: EUR3648 million, +6.9%;
      • SWISS: EUR967 million, +11.0%;
      • Austrian Airlines: EUR441 million, +7.3%;
    • Logistics: EUR662 million, -10.8%;
    • MRO: EUR1026 million, -0.1%;
    • IT Services: EUR146 million, -0.7%;
    • Catering: EUR568 million, +9.2%;
  • Total operating costs: EUR7559 million, +6.1%;
    • Labour: EUR1734 million, +4.9%;
    • Fuel: EUR1624 million, +23.0%;
  • Operating profit (loss): (EUR381 million), compared to an operating loss of EUR169 million in p-c-p;
    • Passenger Airline Group: (EUR445 million), compared to a loss of EUR321 million in p-c-p;
      • Lufthansa Passenger Airlines: (EUR384 million);
      • SWISS: (EUR6 million), compared to a profit of EUR17 million in p-c-p;
      • Austrian Airlines: (EUR67 million), compared to a loss of EUR64 million in p-c-p;
    • Logistics: EUR19 million, -70.3%;
    • MRO: EUR62 million, -10.1%;
    • IR Services: EUR3 million, stable;
    • Catering: (EUR5 million), compared to a profit of EUR2 million in p-c-p;
  • Net profit (loss): (EUR397 million), compared to a loss of EUR507 million in p-c-p;
  • Passenger numbers: 21.9 million, +4.8%;
    • Lufthansa Passenger Airlines: 15.8 million, +4.1%;
    • SWISS: 3.8 million, +4.9%;
    • Austrian Airlines: 2.4 million, +10.1%;
  • Passenger load factor: 74.2%, +1.3 ppt;
  • Cargo volume: 486,000 tonnes, -7.9%;
  • Cargo load factor: 66.7%, -0.7 ppt;
  • Total assets: EUR29,177 million, +3.9% when compared to period ended 31-Dec-2011;
  • Cash and cash equivalents: EUR915 million, +3.2% when compared to period ended 31-Dec-2011;
  • Total liabilities: EUR21,505 million, +7.3% when compared to period ended 31-Dec-2011. [more – original PR – Lufthansa Group] [more – original PR – SWISS] [more – original PR – Austrian Airlines] [more - CAPA Analysis]

Lufthansa Group: “For the full year 2012 Lufthansa Passenger Airlines is anticipating further uncertainty in terms of economic developments and greater cost pressure. The company nevertheless continues to expect higher revenue. Whether it is possible to meet the target of an operating profit depends largely on whether the ongoing steps and those taken in the course of Climb 2011 are sufficient to compensate for the enormous leap in fuel prices,” Company statement. Source: Lufthansa Group, 03-May-2012.

Lufthansa Group: “Lufthansa Cargo is assuming that its business will continue to perform well over the remainder of the year. With flexible, demand-driven capacity management the aim is to keep load factors high despite the challenging market environment. Strict cost management is to be intensified. For the financial year 2012 Lufthansa Cargo is therefore still expecting an operating profit in the three-digit million euro range,” Company statement. Source: Lufthansa Group, 03-May-2012.

Lufthansa Group: “The difficult operating environment is currently expected to continue throughout 2012 [for SWISS]. Despite the forecast in revenue growth it is therefore unlikely that last year’s operating result can be matched. Right from the start of the year,” Company statement. Source: Lufthansa Group, 03-May-2012.

SWISS: “We see no sign at present of any imminent market recovery. And fuel prices and currency movements, too, are unlikely to offer us any better prospects any time soon,” Harry Hohmeister, CEO. Source: SWISS, 03-May-2012.

Austrian Airlines: “We first see reaching the break-even point in 2013,” Jan Albrecht, CEO. Source: Austrian Airlines, 03-May-2012.