FRANKFURT, Nov 7 — German airline Lufthansa reported a rise in quarterly net profit today and confirmed its full-year outlook, even as higher fuel costs added to a “challenging market environment”.
On the same day that it faced a major cabin crew strike in Germany, the carrier announced a net profit of €1.15 billion (RM5.3 billion) between July and September, up four per cent year-on-year.
But the jump was mainly thanks to accounting effects, with the group’s operating profit adjusted for some one-off items, actually falling eight per cent to €1.3 billion.
Lufthansa — which includes Brussels, Swiss and Austrian Airlines — said it had faced higher than expected fuel costs that were only partially offset by cost-cutting efforts.
And like rival airlines it was grappling with “a general slowdown in the global economy”, it said in a statement.
Revenues for the period were up two per cent to €10.2 billion.
“In an increasingly challenging market environment, it is more vital than ever that we consistently take every action within our influence and further reduce our costs,” said chief financial officer Ulrik Svensson.
The group announced new measures at its Austrian Airlines subsidiary, saying it aimed to achieve additional savings of €90 million a year by the end of 2021 through a renewed focus on the Vienna hub, aircraft replacements and lower personnel costs.
Job losses could not be ruled out, a Lufthansa official told reporters in a conference call.
Lufthansa said it was on track to meet its 2019 goals, expecting adjusted earnings before tax and interest of €2.0-2.4 billion while revenues were predicted “to rise by a single-digit percentage amount”.
But it lowered its earnings outlook for Lufthansa Cargo, blaming “current weak market demand”.
The group’s total fuel costs for the year were expected to reach €6.8 billion, €650 million more than in 2018. — AFP
