In contrast to its steep loss in the first quarter, blamed on high fuel costs, Lufthansa reports today that its second-quarter operating profit was better than expectations, reaching €361 million, up by more than 25% from the same quarter last year. This was largely due to beneficial effects from the restructuring of its Austrian Airlines subsidiary. This restructuring led to a one-time earnings boost, Lufthansa explained, because of lower future obligations (such as severance payments, pension payments, anniversary awards) raising operating earnings at Austrian by €82 million. However, Lufthansa has chosen not to reveal Austrian Airlines’ full quarterly figures.
Lufthansa’s growth was also boosted by its aircraft maintenance division, where operating profit more than doubled to €82 million – partly due to the weakening of the euro. Revenues at the group reached €7.89 billion up 6.4%.
[pictured: Lufthansa 747; photo by John Crozier, copyright The Boeing Company 2011]