Lufthansa Reports Smaller Operating Loss for First Quarter
Deutsche Lufthansa AG announced financial results for the first quarter of 2014.
The airline reported an operating loss of €245 million ($341 million) for the first quarter, a year-over-year improvement of 31.8% from a loss of €359 million in the first quarter of 2013.
Lufthansa said that the improvement is a result of an increase in profits at Lufthansa Technik, the airline’s independent aircraft manufacturing and maintenance division, a reduction in expenses caused by the adoption of a new depreciation policy for aircraft and spare engines at the beginning of the year, and improved cost structures in the passenger segment.
The revised depreciation policy and improved cost structures are two of a number of cost-reducing initiatives that the airline group has implemented under its Score program, which was first launched in 2012 to improve operating profit.
Total revenue for the first quarter decreased by 2.5% year-over-year to €6.462 billion, from €6.628 billion in the same period last year. The small drop in revenue was caused in part by adverse currency movements and a 1.2% reduction in the total number of flights operated, owing to fleet reductions and use of larger aircraft.
The carrier said it expects operating profit for 2014 to be between €1.3 billion and €1.5 billion.
Lufthansa owns Austrian Airlines, Brussels Airlines, and Swiss International Airlines.
(Photo: Accura Media Group)