TORONTO — Deutsche Lufthansa AG is reporting an operating profit of 114 million euros for the first six months of 2014, an improvement of 41 million euros from the same period last year.
Total revenue for the period amounted to 14.2 billion euros, a decline of just under 2.1%. Adjusted to exclude non-recurring expenditure totaling some 105 million euros – for such actions as the accelerated installation of the new Lufthansa Business Class seating and provisions relating to the Score program – the first-half operating result amounted to 219 million euros, a 75 million euro year-on-year improvement.
The prime reasons for the improved result were the positive impact of the new depreciation policy for aircraft and spare engines which was adopted at the beginning of the year, and the enhanced cost structures in the passenger business segment.
“For the full year 2014, we are confirming our profit guidance, despite the unusual adverse developments in the second quarter. This quarterly performance was shaped by a number of one-off effects, such as strikes and currency devaluations. At the same time, we have presented a comprehensive work program with quality, growth and innovation initiatives, which we will drive forward with great determination. In doing so, we are also forging the right path for strengthening the Lufthansa Group’s competitiveness and future viability,” says Simone Menne, Chief Officer Finance & Aviation Services of Deutsche Lufthansa AG.