Lufthansa posts strong Q2 results

Lufthansa posts strong Q2 results Updated: Thursday, July 28, 2011    -    News Source: AFP

Germany's leading airline, Lufthansa, on Thursday posted strong second quarter results owing to a favourable comparison with the 2010 equivalent that was hampered by an Icelandic volcano eruption.
Lufthansa reported a net profit of 301 million euros ($432 million) for the three months from April through June, a gain of 55.2 percent from same period a year earlier.

Operating profit was 44.7 percent higher at 230 million euros, a statement said, a sum that fell well below an average analyst forecast compiled by Dow Jones Newswires of 318 million euros.
Obstacles faced this year included the Japanese earthquake, tsunami and nuclear disaster, and political unrest in North Africa, the airline noted.

"Lufthansa remains among the profitable airlines in the world even after six months of strong headwinds," finance director Stephan Gemkow was quoted as saying.
The airline expects the situation in Japan to improve but saw continued challenges in high oil prices and "competitive pressure in certain markets."
Charges related to hedging its fuel costs had forced Lufthansa to post a net loss of 507 million euros in the first quarter of the year.

It reiterated Thursday however its full-year forecast for higher sales and operating profit than last year, citing "the prospect of a positive development of business during the coming six months."