Lufthansa posts €1bn half-year profit

Lufthansa posts €1bn half-year profit

Lufthansa reported an operating profit of more than €1 billion for the six months to June off the back of a near 13% increase in revenues, the best half-year result in the group’s history.

Total revenue for the group rose by €2 billion to €17 billion in the first half of the year, with traffic revenues up 14% to €13.3 billion and operating profits almost doubling year on year from €529 million to €1.042 billion.

German carrier Lufthansa contributed more than half the operating profits at €569 million, up from €361 million in the first half of 2016.

The group reported a net profit of €672 million, up 57% on January-June 2016.

Lufthansa Group chief financial officer Ulrik Svensson said: “We have achieved the best first half-year result in our company’s history.

“In addition to strong demand and a robust pricing environment, this is attributable to the fact we achieved a further structural reduction in costs.

“Our hard work in cutting our costs is reaping its rewards. But we must continue. This is the most important way that our margins can be improved sustainably.”

Swiss made an operating profit of €187 million, about 50% up year on year, with Austrian Airlines making an operating profit of just €3 million.

The group’s rapidly growing low-cost German operation Eurowings and its subsidiary Brussels Airlines lost €77 million in the six months.

However, Lufthansa insisted Eurowings remains on course to break even for the first time this year.

Eurowings’ rapid growth follows Lufthansa’s switch of most flights other than those via its Frankfurt and Munich hubs to the low-cost subsidiary.

Lufthansa forecast capacity growth of almost 5% (4.7%) in the second half of this year.

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