Tailwind Boosts Lufthansa's Financial Results

Lufthansa said its operating profits are expected to exceed last year's level of 577 million euros ($735 million). Previously, the German airline had said they would fall short of that figure.

"Our strategy is working and we are doing our homework," said chairman and CEO Wolfgang Mayrhuber in a statement. "That is paying off. We can see progress and potential in all our business segments."

For the first six months of 2006, operating profits increased by 44 million euros to 297 million euros, the group said on Thursday. Net profit for the term rose against the break-even result in the first half of 2005 to 85 million euros.

Savings measures don't hurt customers

According to Mayrhuber, it was especially important that good results were achieved in the airline's core passenger business.

"Raising profits despite the high oil prices demonstrates Lufthansa's strength," he said. "Our customers are flocking to Lufthansa."

Mayrhuber said that Lufthansa had cut costs in the company and with partners.

"We are not saving at the customers; we are investing for them," he said. "Customer satisfaction remains at a high level."

Pressure continues to save costs

Mayrhuber said the group would continue its action plan, which had to date realized savings of one billion euros.

"Our objective is to boost earnings by 1.2 billion euros by the end of this year and we will achieve that target," he said. "The pressure to reduce costs remains unchanged in face of high oil prices and the unrelenting, strong competition."

All business segments had contributed to the first-half success. Mayrhuber said he was highly satisfied with the integration of Swiss, which Lufthansa bought last year. Swiss had returned to profit, he said.

In the first six months of 2006, the Lufthansa group's turnover totalled 9.6 billion euros, a year-on-year increase of 14.2 percent. However, this figure is only partly comparable with the previous year's owing to the first-time consolidation of the Eurowings group.