Lufthansa Lifts Half-Year Operating Profits to €253 Million

“Despite record high oil prices, we earned an operating profit of 253 million euro. That is a fine feat in such a tough setting," Wolfgang Mayrhuber, Lufthansa´s CEO and Chairman of the Executive Board, said when presenting the half-year figures.

In the first six months of 2005 the Group´s operating result increased by 220 million compared with the first half of 2004. The Group maintained its ascending course with an operating profit of 279 million euro in the second quarter.

"All of our business segments improved their result. We are now more flexible, more productive and react faster – and we have strengthened our sound financial base," Mayrhuber added. Lufthansa has revised its forecast for the full-year result upwards. It now anticipates an operating profit of over 400 million euro.

Increased sales and higher average yields helped to push up profits in the first six months of 2005 in both passenger and freight business. Other key factors were the successful development of the action plan aimed at ongoing cost containment and the fuel price hedging measures.

The Leisure Travel and Catering segments have achieved a continuous and sustained improvement of their performance. "Their efforts are starting to pay off. Thomas Cook is on track to post a profit for the full year. LSG Sky Chefs expects a positive operating result before restructuring costs," Mayrhuber said.

In the first six months of 2005 the Lufthansa Group generated revenue of €8.5 billion, a year-on-year rise of 2.4 percent. The airlines´ traffic revenue increased by 5.2 percent to €6.5 billion on the back of targeted capacity expansion and higher average yields. Other operating income fell by 31 percent to €555 million. The comparable figure in 2004 had contained book profits of €292 million from the sale of an equity stake in Amadeus Global Travel Distribution S.A.