Lufthansa refines forecast for 2013

Dino D'Amore
By Dino D'Amore October 28, 2013 14:37

Lufthansa refines forecast for 2013

Lufthansa Group has increased its adjusted operating result by 47% in the first nine months of 2013. Excluding restructuring costs in connection with the Score program (EUR 168m) and project costs for product improvements (EUR 30m), the Group generated an operating profit of about EUR 860m in the period from January to September. This is an increase of around EUR 280m compared with the adjusted result for the same period last year.

Including the project and restructuring costs, the operating result for the first nine months came to around EUR 660m. In the same period last year, the Group recorded an operating result of EUR 907m. In 2012, Austrian Airlines’ transfer of operations to Tyrolean Airways as well as the settlement of pension obligations at British Midland Ltd., which was sold off, contributed a total one-off amount of EUR 325m to earnings.

The Group succeeded in keeping revenue stable at EUR 22.8bn. Despite a drop in the number of flights, capacity (in seat-kilometres) remained constant, as did the number of passengers. The load factor for flights went up.

With the publication of the key financial figures, Christoph Franz, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, commented: “The Lufthansa Group has improved its result in the operating business for the first nine months of the year. In spite of substantial negative exchange rate effects and fewer flights, we have kept our revenue stable. We have also succeeded in reducing unit costs, in particular in our passenger business.”

Adjusted for fuel expenses, the airlines in the Group cut their costs per available seat-kilometre (CASK) in the first nine months of the year compared with 2012. This was due to the Score projects and will continue over the long term.

In terms of revenue, exchange rate effects impacted adversely on business. This had a noticeably negative effect on revenue developments in euros.

For the full year 2013, the Company is forecasting an operating profit of EUR 600 to 700m. The restructuring and project costs included in this are expected to come to EUR 300m in total. Adjusted for these items, the operating profit is then predicted to be between EUR 900 and 1bn.

Dino D'Amore
By Dino D'Amore October 28, 2013 14:37
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