Lufthansa Group (LH) reported a second-quarter net income of €229
million ($288 million), down 23.9% from €301 million in the year-ago
quarter.
The group earned an operating profit of €361 million for the quarter, up 27.6% from €283 million in the year-ago period. Revenue increased 6.4% to €7.89 billion compared to €7.42 billion in the second quarter of 2011.
LH said that positive factors included consistent capacity and yield management in passenger and cargo traffic, clear restructuring successes at Austrian Airlines and good earnings contributions from the service companies.
LH CFO Simone Menne, who took over the position July 1, said, “By acting systematically, we want to ensure that we can continue to invest for our customers, secure and create jobs for our staff and maintain our profitable growth. We cannot avoid taking some unpleasant steps ... the positive earnings performance and the lower unit costs in the second quarter give us confidence that it is worth the effort.”
LH plans to cut ASKs by 2.5% year-over-year from its winter flight plan 2012/2013. This means growth will be cut to 0.5% for the full year. LH will continue reducing capacity by phasing out older aircraft ahead of schedule and making seasonal adjustments, as it axes flights from Frankfurt to Casablanca, London Gatwick, Larnaca, Palma de Mallorca and Naples, starting with the winter schedule.
As part of its cost-cutting program SCORE, the Group wants to improve operating results by at least €1.5 billion by the end of 2014.
The Group is still forecasting increased revenue and an operating profit in the mid-three figure million euro range for the full year. This forecast does not include restructuring costs in connection with SCORE and the planned reduction of jobs (ATW Daily News, May 7).
It estimates these savings will be between €100-€200 million for the current year.
source: atwonline.com
The group earned an operating profit of €361 million for the quarter, up 27.6% from €283 million in the year-ago period. Revenue increased 6.4% to €7.89 billion compared to €7.42 billion in the second quarter of 2011.
LH said that positive factors included consistent capacity and yield management in passenger and cargo traffic, clear restructuring successes at Austrian Airlines and good earnings contributions from the service companies.
LH CFO Simone Menne, who took over the position July 1, said, “By acting systematically, we want to ensure that we can continue to invest for our customers, secure and create jobs for our staff and maintain our profitable growth. We cannot avoid taking some unpleasant steps ... the positive earnings performance and the lower unit costs in the second quarter give us confidence that it is worth the effort.”
LH plans to cut ASKs by 2.5% year-over-year from its winter flight plan 2012/2013. This means growth will be cut to 0.5% for the full year. LH will continue reducing capacity by phasing out older aircraft ahead of schedule and making seasonal adjustments, as it axes flights from Frankfurt to Casablanca, London Gatwick, Larnaca, Palma de Mallorca and Naples, starting with the winter schedule.
As part of its cost-cutting program SCORE, the Group wants to improve operating results by at least €1.5 billion by the end of 2014.
The Group is still forecasting increased revenue and an operating profit in the mid-three figure million euro range for the full year. This forecast does not include restructuring costs in connection with SCORE and the planned reduction of jobs (ATW Daily News, May 7).
It estimates these savings will be between €100-€200 million for the current year.
source: atwonline.com
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