30 July 2010

German airline sees big leap in profits

Lufthansa made an operating profit of €159 million in the second quarter of 2010, more than tripling the figure for the second quarter in 2009.

However, the airline posted an operating loss of €171m for the first half of the year, €179m less than during the same period last year.

The German carrier blamed the severe winter, the strike by the pilots' union, the volcanic ash crisis and the continued slump in prices for the fall in profits.

However, it said there had been a recovery in demand during the second quarter, particularly in intercontinental traffic, and this, combined with its efforts to reduce costs in all areas, had had a positive impact on its financial results.

Speaking at the presentation of the first-half results, Lufthansa executive board member and CFO Stephan Gemkow said: "There is a noticeable recovery in First and Business Class bookings and the revenue from long-haul traffic.

"A good example of this is our A380 with the new First Class, which has had an excellent load factor in all classes since entering scheduled service on the Frankfurt-Tokyo route.

"Nevertheless, despite our delight with the very good second quarter, we have not yet succeeded in matching the results of earlier years."

By Linsey McNeill