German national airline Lufthansa eclipsed market expectations today, announcing second quarter net earnings of €116m after a loss of €23m in second quarter 2004. The performance exceeded predictions from analysts who foresaw net earnings of €77m.
At the operating level, the carrier had a profit of €279m in the April-June period against €149m a year earlier. Second quarter sales rose to €4.55 billion from €4.36 billion. Analysts had forecast sales of €4.49 billion.
'It was a good performance in a difficult environment,' said Lufthansa head Wolfgang Mayrhuber, who pointed to surging oil prices that forced the company to raise its fares.
Analysts said Lufthansa benefited from a pick-up in international air traffic as well as from cost-cutting efforts and restructuring at troubled subsidiaries.
The carrier said that travel agency Thomas Cook, which it shares with retailer KarstadtQuelle, should return to profit this year along with its catering operation LSG Skychefs. Lufthansa yesterday raised its operating earnings forecast for 2005. The carrier now expects an operating profit of €400m rather than €380m.
