11 March 2010

Bmi 78m euro loss revealed in Lufthansa results

An operating profit of 130 million euros has been achieved by Lufthansa for 2009.

But the group earned about 1.2 billion euros less than the previous year.

UK subsidiary Bmi suffered a loss of 78 million euros.

The overall figures were "burdened by economyÃ¢â¬'˜related weaker demand and the disproportionate decline in average yields in the passenger business segment that accompanied it".

An eight million euro operating loss for the Passenger Airline Group, which includes the financial results of Germanwings, SWISS, Austrian Airlines and Bmi, was "significantly below" the level of the previous year.

The aim to record an operating profit in this business segment was "only narrowly missed".

Chairman and CEO Wolfgang Mayrhuber said: "We are succeeding in the crisis because our business segments are broadlyÃ¢â¬'˜poised and ideallyÃ¢â¬'˜equipped, and because we have a strong balance sheet.

"In addition, we have taken targeted and swift evasive action to steer capacities and costs; without ever losing sight of the customer.

"Despite the highly challenging conditions, we cannot be satisfied with our operating profit, but it remains nevertheless a remarkable performance.

"It marks the reward for the consistent efforts invested in improving profitability."

Mayrhuber added: "It is essential that we implement effective programmes with countermeasures to control the effects of the crisis.

"We will therefore be focusing on finding intelligent ways to improve profitability and, rest assured, we will maintain our high standards of quality at Lufthansa.

"I see no contradiction in saving costs and improving quality - in fact, quite the contrary.

"We are continuing to invest in our ground and on-board products during the crisis, our customers are thanking us for it with excellent marks in customer satisfaction ratings and we intend to maintain this lead."

by Phil Davies