Despite difficult market conditions, Lufthansa Group continues to perform strongly. The Group posted a €57 million ($90.9 million) first-quarter profit compared to last year’s €55 million profit. In the first quarter of last year, Lufthansa Group profit reached €554 million after the Group booked a €449 million book gain on the sale of its stake in Thomas Cook.
For the first quarter end 31 March, Lufthansa Group saw revenues jump 19.1% to €5.58 billion, of which traffic revenue was 25% up to €4.46 billion. The Group attributed the increase to the expansion of sales with higher average revenue adjusted for currency fluctuations in the Passenger Business segment and the full consolidation of SWISS.
The rise of operating expenses was lower than the increase in revenues and this contributed to a 23.7% lift in operating profit to €188 million from €152 million. Swiss International Air Lines contributed €52 million to the operating result, Lufthansa said.
|Lufthansa Group first quarter results, ended 31 March|
||1st Quarter 2008
1st Quarter 2007
|of which traffic revenue
|Profit from operating activities
||+152 €m |
|Source: Deutsche Lufthansa AG|
“We have had an excellent take-off into 2008”, commented Lufthansa Chairman and CEO Wolfgang Mayrhuber. “We are on the right course, we are standing out from the crowd and we have reached a respectable cruising altitude. Our distinct customer orientation and the targeted employment of funds, as well as our careful course and continuous improvements to efficiency will allow Lufthansa to achieve further controlled and profitable growth.”
Lufthansa’s capital expenditure during the reporting period totalled €808 million, of which €493 million were spent on the expansion and modernization of the fleet. Another €214 million was spent on the acquisition of a 19% stake in the JetBlue Airways.
The cash flow from operating activities amounted to €741 million. The Group’s net liquid assets stood at €888 million at the end of the first quarter.