Lufthansa prof­its soar in Q2

Kuwait Times - - BUSINESS -

Ger­man air­line group Lufthansa re­ported zoom­ing prof­its in the sec­ond quar­ter yes­ter­day, as in­creased pas­sen­ger de­mand and lower fuel costs lent tail­winds to its business.

Net profit between April and June stood at 740 mil­lion eu­ros ($875 mil­lion), up 69.3 per­cent from its level in 2016’s sec­ond quar­ter. Op­er­at­ing, or un­der­ly­ing profit reached 1.0 bil­lion eu­ros, on the back of 9.3 bil­lion eu­ros in rev­enue. The group, a Euro­pean gi­ant which owns air­lines like Aus­trian, Swiss and low-cost Ger­man­wings along­side its name­sake brand, said cost-cut­ting in its pas­sen­ger business had led to “sus­tain­ably higher earn­ings” over the first half of the year. Mean­while, Lufthansa’s cargo unit re­turned to prof­itabil­ity in the first half as it pushes through its own ef­fi­ciency drive, while its main­te­nance and cater­ing di­vi­sions con­tin­ued their growth.

In a state­ment, the ex­ec­u­tive board promised “con­tin­u­ous struc­tural im­prove­ments” to keep Lufthansa com­pet­i­tive in a world of chal­lenges from low-cost ri­vals like Ryanair. The Ir­ish car­rier tweaked Lufthansa’s nose ear­lier this year by of­fer­ing flights from its home base in Frankfurt, western Ger­many, with plans to ex­pand the sched­ule in the au­tumn. Look­ing ahead to the full year, Lufthansa con­firmed its fore­castin­creased in mid-July-of op­er­at­ing prof­its ad­justed for special items higher than the 1.75 bil­lion eu­ros re­ported in 2016.

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