ZCZC
BCN-08
GERMANY-AVIATION-EARNINGS
Higher fuel costs clip Lufthansa’s wings in third quarter
FRANKFURT AM MAIN, Oct 30, 2018 (BSS/AFP) – German airline giant Lufthansa
reported falling profits in the third quarter, hit by higher fuel costs and
the pricey integration of defunct competitor Air Berlin.
Between July and September, net profit at the Frankfurt-based group fell 10
percent year-on-year, to 1.07 billion euros ($1.2 billion).
Despite the drop, that was still better than a 983 million euros forecast
from analysts surveyed by Factset.
Operating, or underlying profit adjusted for some one-off items — the
company’s preferred measure of its performance — also fell, shedding 10.8
percent to 1.35 billion euros.
Revenues grew 1.5 percent to 9.96 billion euros.
In a statement chief executive Carsten Spohr hailed “the second-best nine-
month result in our history” as the group reported adjusted operating profit
of 2.4 billion euros between January and September.
Boosted by a an all-time high of 108.5 million passengers in the first
three quarters, the strong performance came despite an increase in fuel costs
amounting to 536 million euros so far in 2018.
Lufthansa was also burdened by costs related to delays and cancellations as
well as to the integration of chunks of Germany’s former second-largest
airline Air Berlin, which went bankrupt last year.
So far this year the absorption — mostly by the low-cost Eurowings
division — has cost 170 million euros, the group said.
Lufthansa confirmed its full-year objective for an adjusted operating
profit “slightly lower” than in 2017.
BSS/AFP/SR/1835 HRS