Lufthansa raises FY2010 forecast; airberlin gains; Vueling net profit slips

Lufthansa was one of the day’s biggest gainers on Wednesday (27-Oct-2010) after the group announced it registered a 24.9% year-on-year increase in revenue to EUR20,200 million and an improvement in operating profit of EUR612 million in the nine months ended 30-Sep-2010.

The group also reported a net profit of EUR524 million, up from the EUR31 million registered in the previous corresponding period. According to Dow Jones, analysts had on average expected the carrier to report a net profit of EUR286 million for the period.

Lufthansa's Executive Board also revised its expectations for the earnings development upwards and now anticipates that the operating result for the full year will exceed the EUR800 million mark, in view of the course of business to date and current stable demand. The carrier is scheduled to release its full 3Q2010 results on 28-Oct-2010.

See related CAPA Profile: Outlook, Forecasts, Guidance

Air France-KLM (+2.0%) also gained following its upward revision of its operating result expectations for the 12 months ending 31-Mar-2011 the day prior.

airberlin (+3.8%) and Cimber Sterling (+1.2%) also gained. 

Vueling net profit slips

Vueling (-2.0%) declined after the carrier reported a 2% year-on-year fall in net profit for the three months ended 30-Sep-2010, to EUR43.3 million. EBIT was also down for the period, falling 13%, to EUR59.4 million. The decline was despite a 7% rise in revenue to EUR276.6 million. However, total costs were up 14% for the quarter to EUR217.2 million.

The carrier stated it now expects EBIT of EUR60 million-70 million for the full year. Cost per ASK, excluding fuel, are expected to fall 4.3% for the year to EUR 4.0 cents.

For 2011, the carrier expects “continuous competitive intensity in our markets and fuel cost increases”. In response, Vueling has implemented its 2011 cost reduction programme.

See related CAPA Profile: Financial Results

Elsewhere, Turkish Airlines (-3.3%) and Aegean Airlines (-2.1%) also fell for the session.

Europe selected airlines daily share price movements (% change): 27-Oct-2010