31% fuel saving boosts Q1 results
Lufthansa has posted a €44m operating loss blaming a "traditionally tough" first quarter, the worldwide recession and a poor trading environment.
The airline group said it was not able to live up to last year's €260m positive result, however its balance sheet was boosted by a 31% saving on fuel costs.
Lufthansa said its operating expenses had decreased to €5.9bn as fuel costs sank to €739m, the result of changes in oil price and volume.
But the German airline said it had not escaped the effects of "negative currency" and bad fuel hedging.
Traffic revenue fell 14.6% to €3.8bn as passenger numbers dropped. Lufthansa said capacity had been further cut in response to a "prolonged reduction in demand."
"To counter this development, measures such as a reduction in capacity, a cost reduction programme and short-time work at German locations are being applied," Lufthansa added.
Lufthansa reported a net loss of €256m in the three months to March 31, down from €44m year-on-year.
Fleet renewal and expansion costs amounted to €519m, making up the lion's share of Lufthansa's €664m capital expenditure.
€77m was raised from the sale of remaining shares in Condor Airlines and the repayment of related loans.
Lufthansa's chief operating officer said the group's airline segment would continue to grow.
"We are developing our core business through the expansion of our passenger airline group and the further strengthening of our alliances and partnerships, in order to emerge from the current financial climate stronger than ever," he said.
Lufthansa predicted further declines in revenue and a "considerable reduction" in its group operating result for the full year.
Mr Gemkow said he remained confident that Lufthansa would maintain "a significantly positive operating result, even in this environment."
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