PlaneInsomniac From Canada, joined Nov 2007, 749 posts, RR: 0 Posted (5 years 11 months 1 week 20 hours ago) and read 6153 times:
It seems nobody can escape the crisis. LH Revenue in H1 2009 was 15% less than in 2008. Operative profit was 8 million EUR, but the net result was a loss of 216 million EUR (H1 2008: net profit 381 million EUR).
Addendum: Total number of passengers was 5% less than in H1 2008, but it seems the "premium segment" (First and Business class) was hit particularly hard, explaining the big reduction in revenues. LH predicts that the rest of 2009 will also be difficult due to the economic crisis and the high oil price. A massive cost reduction program has been announced.
[Edited 2009-07-29 12:21:53]
[Edited 2009-07-29 12:28:14]
Am I cured? Slept 5 hours on last long-haul flight...
Offloaded From United Kingdom, joined Apr 2009, 1018 posts, RR: 0
Reply 3, posted (5 years 11 months 1 week 3 hours ago) and read 4983 times:
I am still surprised that LH are able to maintain their fare structure the way they do in Y (refering to advance purchase rules, Saturday night stays, one ways etc) given the competition around from AB, FR, U2, BA etc.
To no one will we sell, or deny, or delay, right or justice - Magna Carta, 1215
Slz396 From , joined Dec 1969, posts, RR:
Reply 4, posted (5 years 11 months 1 week 3 hours ago) and read 4942 times:
Quoting Stylo777 (Reply 1): the forecast was set for 256 million loss, but now they have 216... still bad, but don't forget that they made some serious money (1.4 billion EUR to be exact) in 2008!
It might be worth considering we're talking H1 figures, which are made up of Q1 and Q2.
As already reported, Q1 was particularly weak, but Q2 showed early signs of a modest recovery, in so far that Q2 on itself was profitable (52M euro). Sadly not enough to offset those of Q1, but if the trend continues (H2 is traditionally better), then the worst is behind them and LH will be back in the profit over the full year.
I don't know, but I'd figure most legacy airlines would be pretty happy to only see one Q of losses and a (seriously) reduced annual profit in the deepest economic recession for decades.
VV701 From United Kingdom, joined Aug 2005, 8183 posts, RR: 24
Reply 7, posted (5 years 11 months 6 days 20 hours ago) and read 3102 times:
The key to airline profits still seems to me to be only a little to do with falling passenger numbers - particularly with premium class passengers - and much more to do with fuel prices actually paid.
This time l;ast year crude oil was still accelerating towrds $150 a barrel and many "experts" were talking $200-a-barrel oil. So even with today's high price of around $70, many airlines are buying aviation fuel at a price equivalent to a much higher figure because they bought forward when the oil price was still climbing.
So those airlines that bought forward when crude dipped below $40 a barrel are the airlines likely to show the best profits for the current year. Unfortuneately the profitability of any airline is more likey to reflect its fuel purchasing policy than its performance as an airline. And this is likely to continue while prices remain as volatile as they have been over the last 18 months. And to me, and I declare I have no expertise in this area, if the price is $70 a barrel in the middle of the worst worldwide economic recession for decades, God help the airlines when the economies recover and we do get $200+ oil.