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Lufthansa remains on course with an improved operating result: during the first six months of 2008, the Group increased its offer and sales. The Group improved its operating result toEUR705 million which marked an increase of EUR219 million in comparison with the first six months of 2007.
The newly consolidated SWISS contributed a share of 157 million euros. The net profit for the period was reported at EUR402 million; during the same period last year this figure was at EUR992 million, however, it included book gains of EUR503 million from the sale of the Thomas Cook stake, as well as EUR71 million from the share buy-back by WAM Acquisition S.A. "The result is a strong performance in a highly challenging environment. It marks the reward for the hard work that has been invested by all of the Lufthanseats and all of the Group's companies, such as SWISS. It is the result of careful precautions", commented Lufthansa Chairman and CEO Wolfgang Mayrhuber, speaking at the presentation of the first-half results.
Commenting on the future development of the Group, Mayrhuber underlined that, "the undoubtedly very good first-half result should not allow us to lose sight of the major challenges that lie ahead. Our company has the great opportunity to emerge relatively stronger from the increasingly difficult market and competition situation that we find ourselves in. We have laid the foundations and will not jeopardize our future. We have shown in the past that we are prepared for these kinds of situations and are capable of reacting to them. Our financial strength and operating adaptability will grant us the opportunity to remain profitable and strong, and to continue to make our company more attractive for our shareholders, customers and employees." The Lufthansa Chairman and CEO remains confident that these abilities to implement a goal-oriented response, result-oriented management and additional cost limiting measures will not be in vain. Consequently Lufthansa continues to expect that for the full year 2008 it will follow up on last year's operating result. The risks lie in the renewed and prolonged increase of the fuel prices, the continued downturn in economic growth or the implications of possible further strikes that are not yet foreseeable and costs as a result of the ongoing wage negotiations.
First-half figures 2008
During the first six months of 2008, the Lufthansa Group generated revenues totalling EUR12.1 billion, a year-on-year increase of 19.5%. The traffic revenue rose by 25.6% to EUR9.7 billion. This was mainly due to the increased passenger figures with currency adjusted higher average yields in the Passenger Transportation business segment and the full consolidation of SWISS. During the first half of 2008, the operating income increased by altogether 19,1% to EUR12.9 billion.
Operating expenses rose to EUR12.1 billion during the first half of 2008, mainly as a result of the rise in fuel costs. This was due to price and quantity-related factors, as well as changes in the group of consolidated companies.
The operating result improved by EUR219 million to EUR705 million during the first six months. The Group posted a net profit of EUR402 million. In 2007, this position included book gains from the sale of the Thomas Cook stake and the share buy-back by WAM Acquisition S.A.
Lufthansa's capital expenditure during the reporting period totalled EUR1.2 billion, of which EUR765 million were spent on the expansion and modernization of the fleet and 214 million euros were spent on the acquisition of a 19% stake in the JetBlue Airways Corporation on 22-Jan-08. The cash flow from operating activities amounted to EUR1.8 billion. The Group's net liquidity stood at EUR916 million at the end of the first half of 2008.
(c) Centre for Asia Pacific Aviation. Date posted: 31-Jul-08
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Lufthansa remains on course after the first half of 2008 
