Lufthansa reports quarter billion euro loss
May 1, 2009
www.lufthansa.com
On Thursday, German airline Lufthansa posted a first-quarter net loss amounting to 256 million euros, as the airline industry continued to reel from the global economic crisis.
During the same three-month period last year, the carrier reported a profit of 44 million euros.
This quarter’s operating loss of 44 million euros was a better result than what analysts had forecast, which led to the airline’s shares rising significantly in Frankfurt trading early in the day.
The airline warned, however, that sales for the full year were likely to be down due to the decline in demand for air travel.
Stephan Gemkow, Lufthansa’s finance director, was reported to have said the company was in a good position to weather the unfavourable trading climate.
“Now we will see who is prepared and able to react effectively against these difficult conditions. Lufthansa is a strong company and can hold its course, even in difficult times,” said Gemkow.
The carrier had warned that for 2009 there would be “a considerable reduction” in operating profit, but Lufthansa’s director of finance noted that the company should “maintain a significantly positive operating result, even in this environment.”
The carrier benefited from a sharp drop in fuel costs, which shed 31 percent to 739 million euros as the number of passengers and amount of freight carried declined.
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www.lufthansa.com
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