ATW Daily News

Lufthansa reports profitable quarter, issues full-year warning

Thursday October 29, 2009

Lufthansa posted a €184 million ($273.4 million) net profit in the third quarter but remained in the red through the first nine months of 2009 and yesterday issued a warning that its target of a full-year operating surplus now is at risk.

Yesterday the German company reported a nine-month net loss of €32 million, reversed from a €529 million profit in the year-ago period. The third-quarter result was calculated based on LH's half-year figures released in July (ATWOnline, July 30). Its operating profit of €218 million resulted in a €226 million surplus through the nine-month period that represented a 76.3% slide from the year-ago period and left LH doubting its full-year prospects.

It said its "earnings continue to be subject to very considerable risks as a result of volume and price trends and renewed oil price increases. A sharp drop in revenue and continued pressure on earnings is therefore expected for the full year."

It also expects to take a hit from its newly acquired subsidiaries. Although Austrian Airlines and bmi contributed €28 million to the third-quarter result, LH said, "negative earnings contributions are also anticipated from the new companies in the airline group over the months ahead." It added, "Business performance in the fourth quarter will therefore be a deciding factor in whether these factors can be successfully compensated for and the goal of a positive operating result. . . can still be achieved."

LH will release its full earnings report today.

by Brian Straus

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