Germany's Deutsche Lufthansa improved its operating margin by almost two-fifths in the first nine months of the year as it posted a 57 percent rise in operating profit, the airline said on Oct. 25.

"Our goal is clear: we want to become the most profitable network carrier with a global offering," finance chief Stephan Gemkow said in a presentation published on the carrier's web site.

The adjusted group operating margin grew 1.9 percentage points from a year ago to 7.0 percent, he said.

Lufthansa said on Oct. 24 that its nine-month operating result rose to EUR1.09 billion (US$1.55 billion), matching the average forecast in a Reuters analyst poll. It repeated its 2007 profit goal of around EUR1.3 billion, up from EUR845 million last year.

Nine-month sales rose 9.3 percent to EUR16.4 billion, while net profit almost quadrupled to EUR1.58 billion.

Lufthansa said this reflected positive operating developments, the sale of its stake in holiday joint venture Thomas Cook earlier this year and a one-off cut in deferred tax liabilities of EUR211 million in the third quarter.

Airline Swiss, which has been fully consolidated since July after Lufthansa bought it in 2005, contributed EUR90 million to the operating result for the third quarter, Lufthansa added.

Lufthansa has also said it is interested in Iberia and Alitalia, though the current price of its Spanish rival and the conditions surrounding the sale of its Italian competitor have so far dampened its enthusiasm.

Referring to Lufthansa's capital expenditure plans, Gemkow said on Oct. 25: "Reserves for additional airline acquisitions in Germany or abroad have explicitly not been made."

But the financial investment schedule for the coming year did take into account the purchase of shares in British airline bmi, in which majority shareholder Michael Bishop has a put option. Lufthansa owns 30 percent of bmi minus one share.

Gemkow added on Oct. 25 that the company had hedged over 75 percent of its fuel needs for 2008.

"Above a price of US$75 per barrel we enjoy a significant cost advantage over our unhedged competitors," he said. "Only if the price drops below US$55 a barrel we are at a tangible disadvantage to the market price."

Lufthansa expects fuel costs to rise to EUR4.8 billion next year from EUR3.8 billion this year due to expansion and "the persistently high level of oil prices".