Lufthansa First Half Profit Approaches EUR1 Billion
By Brian Straus, ATW Daily News | Jul. 26, 2007
Boosted by hefty nonoperating gains from asset sales and its investment in Swiss International Air Lines, Lufthansa reported a net profit of EUR992 million (US$1.37 billion) in the first six months of 2007, up from EUR85 million in the year-ago semester and representing a record high for the company.
The result implies a second-quarter profit of EUR438 million, which compares to a EUR138 million profit in the second three months of 2006.
LH said the "very gratifying" half-year figure was the result of a 5.2% increase in revenue to EUR10.1 billion that helped boost its operating profit 64% to EUR486 million, an EUR88 million contribution from Swiss, a EUR503 million gain from the sale of its 50% stake in Thomas Cook AG and EUR71 million in proceeds related to a share buyback by WAM Acquisition.
The company subsequently raised its full-year guidance and now expects an operating profit "significantly above" the EUR1 billion forecast three months ago.