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LH Group Post Loss Of E 330 Mln In Q1  
User currently offlinesevernaya From Russia, joined Jan 2009, 1428 posts, RR: 1
Posted (4 years 6 months 4 weeks 9 hours ago) and read 4040 times:

Despite a higher pax amount (see here: LH Group Carried 19 M Pax In Q1, Up 26.5% (by Robffm2 Apr 14 2010 in Civil Aviation) for more info) the operating result have been quite bad for the 1st quarter (jan-mar) 2010 for the LH Group.

Quote:

The Lufthansa Group has posted an operating loss of 330 million euros for the first three months of 2010; the figure is 286 million euros less than during the same period the previous year. After a crisis-related decline in demand in 2009, combined with a major slump in prices, the Passenger Airline Group and Logistics business segment were able to significantly improve traffic performance in the traditionally weak first quarter. However, the slump in prices continues to place a burden on the result of the Passenger Airline Group.
Quote:
Lufthansa Passenger Airlines contributed a loss of 236 million euros to the negative operating result, Austrian Airlines contributed -66 million euros, bmi -45 million euros, Germanwings -34 million euros and also included was a contribution of one million euros from SWISS.

more at the LH website: http://investor-relations.lufthansa....gebnis-im-ersten-quartal-2010.html

Only LX made a small profit (however down from 42 to 1 mln) of all the airlines in the LH Group. Especially the losses for BMI and Germanwings are huge compared to their revenue.

It still leaves me with the question what the strategy of Germanwings may be within the LH Group as many routes could be operated by LH metal while some routes are even competing with existing LH routes?


Всяк глядит, да не всяк видит.
7 replies: All unread, jump to last
 
User currently offlineflyingAY From Finland, joined Jun 2007, 712 posts, RR: 0
Reply 1, posted (4 years 6 months 4 weeks 5 hours ago) and read 3743 times:

And Q2 results will be impacted by the volcanic ash hassle, so most likely no profit during Q2 either.  

User currently offlinesevernaya From Russia, joined Jan 2009, 1428 posts, RR: 1
Reply 2, posted (4 years 6 months 3 weeks 6 days 14 hours ago) and read 3319 times:

Quoting flyingAY (Reply 1):
And Q2 results will be impacted by the volcanic ash hassle, so most likely no profit during Q2 either.  

Indeed, it will be interesting to see how the LH Group will manage a profit as "Executive Board confirms positive full-year forecast"



Всяк глядит, да не всяк видит.
User currently offlineslz396 From , joined Dec 1969, posts, RR:
Reply 3, posted (4 years 6 months 3 weeks 6 days 13 hours ago) and read 3138 times:

Quoting severnaya (Thread starter):
the operating result have been quite bad for the 1st quarter (jan-mar) 2010 for the LH Group.

That is our personal interpretation, I take?

Mind you however, Q1 is traditionally very weak for LH and they hardly EVER see a profit in that period, except for the very very good years (like 2008 for instance).

I'd say their Q1 results are encouraging and hopeful for a fairly good result this year indeed. Not as good as 2008 (1.3 BN profit), but definitely better than last year's result...

As the LH statement says:
The Lufthansa Group has posted an operating loss of 330 million euros for the first three months of 2010; the figure is 286 million euros less than during the same period the previous year.

So in fact they are doing better than in the same period last year DESPITE consolidating OS and BM for the first time. As such, and despite the ash cloud, they should thus have no problem at getting a positive year's end result, although if European skies are closed down for several weeks later this year once more, there is obviously no way to guarantee this.
...


User currently offlinecolumba From Germany, joined Dec 2004, 7088 posts, RR: 4
Reply 4, posted (4 years 6 months 3 weeks 6 days 13 hours ago) and read 3123 times:

That is because they use a fleet of inefficient 4 haulers instead of twin engine aircraft  

Okay joke aside, the times are hard and LH has a lot of "construction" sides these days SN, OS, BMI still I believe that things will get better till years end.



It will forever be a McDonnell Douglas MD 80 , Boeing MD 80 sounds so wrong
User currently offlineBurkhard From Germany, joined Nov 2006, 4405 posts, RR: 2
Reply 5, posted (4 years 6 months 3 weeks 6 days 13 hours ago) and read 3078 times:

One of the house made contributions to this disappointing result are the strikes, LH management and pilots have to find a way out of their disputes, which requires the ability to move from both sides. LH cannot remain profitable if not fully supported by its most important staff members.

User currently offlinePanHAM From Germany, joined May 2005, 9676 posts, RR: 31
Reply 6, posted (4 years 6 months 3 weeks 6 days 12 hours ago) and read 3069 times:

that translation somehow sucks. If you scroll down and look at the summarize you will see that the operating loss in the first quarter 2009 was € 44 million, whereas it was € 330 million in the first qu of 2010. That means, by all accounting standards, that the loss was € 286 million greater than it was in the same period of last year.

In plain German, they lost more than they did last year and cited 2 main reasons, the winter weather and that stupid pilot strike. That unresponsible volcano won't make it easier to post a profit in the second quarter and we can only keep the fingers crossed that Greece will not erupt again this month or next.

If everything turns out well and pilots and flight attendants rate the job security in a profitable company higher than stupid political demands that would only weaken the company and their jobs as a consequence, and no further hardship travels down the airlanes, then we might see an overall profit for 2010. Honestly, I want to see a dividend again.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlinesevernaya From Russia, joined Jan 2009, 1428 posts, RR: 1
Reply 7, posted (4 years 6 months 3 weeks 6 days 12 hours ago) and read 3001 times:

Quoting slz396 (Reply 3):
That is our personal interpretation, I take?

Correct, but based on the numbers they published which i'm comparing with last years numbers.

Quoting slz396 (Reply 3):
Mind you however, Q1 is traditionally very weak for LH and they hardly EVER see a profit in that period, except for the very very good years (like 2008 for instance).

I'm not saying a loss is per sé bad in Q1 as it's indeed a weak quarter, however these numbers are compared to last year not so positive.

Quoting slz396 (Reply 3):
I'd say their Q1 results are encouraging and hopeful for a fairly good result this year indeed. Not as good as 2008 (1.3 BN profit), but definitely better than last year's result...

No this is not true. I hardly can say it's encouraging. At the press release there you'd see at the bottom of the page a table where clearly is stated that in 2009 the Q1 result was -44 mln, and 2010 Q1 result is -330 mln, a difference of 286 mln (negative that is, mind you). So the result is by far not better than last year,it's worse. Yields have been very low on average in Q1 whereas the number of pax have increased (taken into account the consolidation) by 2.9%.From all continents only the Americas have recorded an slightly higher yield.

Quoting slz396 (Reply 3):
So in fact they are doing better than in the same period last year DESPITE consolidating OS and BM for the first time. As such, and despite the ash cloud, they should thus have no problem at getting a positive year's end result, although if European skies are closed down for several weeks later this year once more, there is obviously no way to guarantee this.

Maybe you have more information than publicly available, but i do not see a very positive trend yet, as LH itself (not the LHGroup) recorded as loss of 236 mln (compared to 44 mln loss in Q1-2009).The consolidation of OS though is good, however profits/losses didn't increase. The ash clouds are estimated at a 200mln loss for the LH Group.



Всяк глядит, да не всяк видит.
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