Lufthansa reports big Q1 loss

06 May 2011

1

Lufthansa Group has reported a net loss of €507 million ($752.6 million) for Q1, up from €298 million in the year-ago period. Lufthansa clarified that the loss is not as sharp as it seems as it includes a €300 million charge associated with a change in the value of fuel hedge options.

CFO Stephan Gemkow said the charge was "purely an accounting effect," and added that the "hedging options are taking a lot of pressure off our operating result."

First-quarter revenue was up 11.8% year-over-year to €6.4 billion while operating loss was €227 million, down from an operating deficit of €330 million in the year-ago period.

Lufthansa Passenger Airlines posted a first-quarter operating loss of €234 million, LH Group said in a preliminary earnings release.

Swiss International Air Lines earned a first-quarter operating profit of €17 million, Austrian Airlines incurred an operating loss of €64 million, bmi reported a €63 million operating deficit and Germanwings suffered an operating loss of €44 million.

"In addition to the effects of the catastrophes in Japan and the political unrest in North Africa, [LH Group's negative first-quarter] result can also be attributed to the rise in oil prices during the past months and the burdens brought about by the severe winter," the company stated.

 

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers