Lufthansa Reports First Quarter Results

While the Lufthansa Group reported that it improved its operating result by approximately $150 million during the first three months of 2011, the economic result for the traditionally weak first quarter was negatively influenced by the catastrophes in Japan and the political unrest in North Africa, leading to an overall operating loss of approximately $331 million.

Despite revenue growth, the Passenger Airline Group, the business segment of the group with the highest revenue, recorded an operating result just below the previous year’s figure at negative $570 million. In addition to the effects of the catastrophes in Japan and the political unrest in North Africa, the result can also be attributed to the rise in oil prices during the past months and the burdens brought about by the severe winter, Lufthansa said.

The Passenger Airline Group achieved a significant reduction of its unit costs as well. Lufthansa Passenger Airlines, like Germanwings, suffered from the new German air-traffic tax that was introduced at the beginning of the year. Lufthansa posted a first-quarter operating loss of $341 million. SWISS recorded an operating profit of nearly $25 million; Austrian Airlines reduced its operating loss to $93 million; Bmi entered an operating result of negative $92 million; and Germanwings closed the first quarter with an operating loss of $64 million.

Lufthansa said it does not consider the generally positive development of the current year at risk and the Group’s Executive Board therefore continues to anticipate a year-on-year increase in revenue and operating result for 2011. However, the uncertainty surrounding the further developments in Japan and North Africa, as well as their implications with regard to the oil price, do not allow for any further quantification of the full-year operating result.



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