The Lufthansa Group was able to improve its operating result by 103 million euros during the first three months of the current year. However, the economic result for the traditionally weaker first quarter was negatively influenced by the catastrophes in Japan and the political unrest in North Africa with the Group posting an operating loss of 227 million euros. The Group result of minus 507 million euros includes a negative measurement effect of around 300 million euros from the application of IAS 39. This is contrasted by positive changes in the 'intrinsic values' of financial derivatives amounting to 435 million euros, which are however, in accordance with IAS 39, recognized in equity without effect on profit and loss.
Despite revenue growth, the Passenger Airline Group, the business segment in the Group with the highest revenue, recorded an operating result just below the previous year's figure at minus 391 million euros. In addition to the effects of the catastrophes in Japan and the political unrest in North Africa, the result can also be attributed to the rise in oil prices during the past months and the burdens brought about by the severe winter. Although the business segment was able to record an increase in sales, the given circumstances meant that it was unable to fully sell the expanded offer, generated mainly by the modernization of the fleet. Nonetheless, the Passenger Airline Group did achieve a significant reduction of its unit costs. Lufthansa Passenger Airlines, like Germanwings, suffered from the new German air traffic tax that was introduced at the beginning of the year. The airline posted a first-quarter operating loss of 234 million euros. SWISS recorded an operating profit of 17 million euros; Austrian Airlines reduced its operating loss to 64 million euros; bmi entered an operating result of minus 63 million euros; and Germanwings closed the first quarter with an operating loss of 44 million euros.
The development of the Logistics business segment continues to be very positive, with the company not only recording a major increase in revenue, but also an improved operating result of 64 million euros. Lufthansa Cargo managed to sell almost all of its significantly expanded offer and recorded higher average yields, in what was the best quarter in the company's history. Lufthansa MRO posted an increase in revenue in the face of increasing pressure on margins and earned an operating profit of 69 million euros, almost matching the very good result of the previous year. The IT Services business segment acquired new business during the first quarter and increased revenue. The operating result remained stable at three million euros despite the additional expenses incurred within the framework of the implemented cost-reduction programme. The Catering business segment benefitted from the rise in the number of passengers, recording an increase in revenue and posting an operating profit of two million euros.
Lufthansa does not consider the generally positive development of the current year at risk and the Group's Executive Board therefore continues to anticipate a year-on-year increase in revenue and operating result for 2011. However, the uncertainty surrounding the further developments in Japan and North Africa, as well as their implications with regard to the oil price, do not allow for any further quantification of the full year operating result.
First-quarter figures 2011
During the first three months of 2011, the Lufthansa Group generated revenues totalling 6.4 billion euros, equivalent to a year-on-year increase of 11.8 per cent. The traffic revenue rose by 14.2 per cent to 5.2 billion euros. During the reporting period, the Group's operating income increased by altogether 12.8 per cent to 7.2 billion euros.
Operating expenses rose by 9.7 per cent to 7.4 billion euros during the first quarter of the year. One important reason for this were the fuel costs, which rose by 297 million euros to a total of 1.4 billion euros; this was equivalent to a year-on-year increase of 27.8 per cent, which was both price and volume related. A positive hedging result of 177 million euros is already included in this amount. The fees and charges were 16.5 per cent above the previous year's figure.
The Lufthansa Group posted an operating result of minus 227 million euros, which marked an increase of 103 million euros in comparison to the previous year's figure. The Group posted a net loss of 507 million euros; during the same period last year, it had stood at minus 298 million euros. The figure however includes a negative measurement effect of almost 300 million euros from changes in the time values of hedging transactions following the application of IAS 39. Earnings per share amounted to minus 1.11 euros. Adjusted after the balance sheet effect, the figure would have improved to minus 0.59 euros (the adjusted figure for the previous year being minus 0.61 euros).
Lufthansa's capital expenditure during the reporting period totalled 744 million euros, of which 606 million euros were spent on the expansion and modernization of the fleet. Operating cash flow totalled 779 million euros, the free cash flow (operating cash flow minus net investments) stood at 358 million euros. At the close of the first quarter of 2011, the Group had reduced its net indebtedness to 1.4 billion euros. In comparison to the 2010 financial statements, the Group's equity ratio dropped from 28.4 per cent to 26.9 per cent.
|of which traffic revenue||€m||5,224||4,576||14.2 %|
|Profit from operating|
|Operating result||€m||-227||-330||31.2 %|
|In %||-3.3 %||-5.4 %||2.1 PP.|
|Group result||€m||-507||-298||-70.1 %|
|Capital expenditure||€m||744||534||39.3 %|
|Cash flow||€m||779||564||38.1 %|
(as of 31 March 2011)
|Earnings per share||€||-1.11||-0.65||-0.46|
*) Operating result plus write back of provisions divided by revenue
The complete interim report for the first quarter of 2011 is available on the Internet at www.lufthansagroup.com/investor-relations.
Disclaimer in respect of forward-looking statements
Information published in this press release with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive historical facts. These forward-looking statements are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of their publication. Since forward-looking statements are by their very nature subject to uncertainties and imponderable risk factors - such as changes in underlying economic conditions - and rest on assumptions that may not or divergently occur, it is possible that the Group's actual results and development may differ materially from those implied by the forecasts. Lufthansa makes a point of checking and updating the information it publishes. It cannot, however, assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some later date. It neither expressly nor conclusively accepts liability, nor gives any guarantee, for the actuality, accuracy and completeness of this data and information.