Advanced Financial Management



Advanced Financial Management

Company Background

The Lufthansa Group achieved an operating profit in the second quarter. Its activities in Europe remain under pressure. The airline expects an increase in operating income over the full year, in line with market expectations. During the second quarter of this fiscal year, Deutsche Lufthansa AG has realized an operating profit of EUR 159 million, three times more than during the second quarter of the previous year. This positive result is mainly due to a recovery in demand, particularly in the freight sector and intercontinental traffic, and the efforts made in recent months to reduce costs in all sectors of the group. During the first six months of the year, the group has however been hurt by the harsh winter, the strike of pilots union Vereinigung Cockpit, the closure of airspace following the eruption of Icelandic volcano and the persistence of low prices.

During the first half, the group achieved a total operating income of less than 171 million euros, 179 million less than during the same period a year earlier. On the occasion of the presentation of the half-year figures, Stephan Gemkow, Finance Director and General Aviation Services of Deutsche Lufthansa AG, said: "The reservations in first class and business class in the transportation of passengers and revenues along e-rebounded significantly. I want to show our A380 with new first class, whose occupancy rate regardless of the class is excellent since the commissioning of the line to Tokyo (Zalewski, 2008). Despite the good results of the second quarter, the fact remains that we have not yet reached the level of previous years. "

And Stephan Gemkow added: "We remain determined to move forward with measures to reduce costs, and, in particular because of falling prices and the change in demand for short distances . Ground personnel and pilots and made great efforts during the agreements on wage agreements with unions and Vereinigung Cockpit ver.di. "Although the group Passage Airline with an operating income for the second quarter, however this sector loop the first half of a significant operating loss of 342 million euros, 203 million euros for Lufthansa Passage.Climb 2011, the Lufthansa Passage plan designed to guarantee the result will therefore be systematically continued as the restructuring of new airlines included in the roadmap. Austrian Airlines contributes 70 million euros in operating profit of the group Passage Airline. The share of bmi stands for its less € 93 million and that of Germanwings least 39 million euros while SWISS displays a result of over 54 million euros (Cartwright, & Schoenberg, 2006).

And Stephan Gemkow to add about the logistics industry: "A systematic management of costs is paying off, even during phases of market recovery. Proof is in the freight sector: after taking severe measures to improve the result, Lufthansa Cargo has achieved the highest interim result the group's history. This is a superb performance. "This business has posted an operating profit of 144 million euros in the first half, 278 million more over the same ...