Airlines carry close to 22 million passengers in first three months of the year

The airlines in the Lufthansa Group carried a total of 4.8 per cent more passengers in the first quarter 2012 than in the same term last time round. All in all, 21.9 million passengers opted to fly with Lufthansa, Germanwings, SWISS or Austrian Airlines. Besides lifting passenger figures in the first three months, all the carriers in the Passenger Airline Group raised the average seat load factor of their aircraft. The seat load factor rose group-wide by 1.3 percentage points to 74.2 per cent. Capacity was increased by 2.6 per cent sales were up by 4.4 per cent.

Lufthansa Passenger Airlines carried a total of 15.8 million passengers in the three-month term in 2012, an increase of 4.1 per cent on the year-earlier level. Capacity was up by 1.6 per cent, while sales increased by 3.5 per cent. The seat load factor rose accordingly on the prior-year level by 1.3 percentage points to 73.8 per cent. SWISS transported around 3.8 million passengers in the first quarter, Austrian Airlines carried close to 2.4 million passengers.

Volumes at Lufthansa Cargo fell by 9.3 per cent in the first three months of the present year compared with a strong first quarter in 2011. During the term, the cargo carrier in the Lufthansa Group carried a total of 426,00 tonnes of freight and mail. Capacity was reduced by 8.2 per cent against the level in the previous year. The load factor slightly fell by 0.4 percentage points to 69.5 per cent.

The business figures of the Lufthansa Group in the first three months of 2012 will be released on 3 May 2012 and will be available for download from 8.00 CET at www.lufthansa.com/investor-relations.

Lufthansa 12.04.12

Lufthansa Group reports an operating loss of EUR 381m in the first quarter of 2012

Record quarterly revenue for the Passenger Airline Group / High fuel costs, taxes, fees and charges depress earnings

Deutsche Lufthansa AG generated revenue of EUR 6.6bn in the first quarter of 2012, 5.6 per cent more than in the same period last year. The increase was mainly due to higher traffic revenue, which in turn stemmed from a higher sales volume and price increases in the passenger business. However, increased fuel costs, the air traffic tax imposed in Germany and Austria and the costs of emissions trading in force in Germany since 2012 all had an adverse effect on the Group's operating result. At the end of the first quarter it came to EUR -381m, a fall of EUR 212m compared with the figure for the same quarter a year ago. Altogether the net result for the period was EUR -397m. The increase of EUR 110m is largely due to the negative changes in the time value of hedging options recognised in the first quarter of last year. Cash flow from operating activities rose to EUR 833m and made it possible to generate a free cash flow of EUR 540m. Christoph Franz, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said, "Higher taxes, fees and charges put a massive strain on our quarterly result. It was well down on last year despite record revenue. We cannot wait until politicians also recognise the damage that one-sided taxes and charges do to aviation and to Europe's reputation as a place to do business. Our SCORE programme is our own response to these additional burdens. It will safeguard Lufthansa's position as number one in Europe and enable us to maintain our place in global competition in the long-term."

SCORE secures Lufthansa's future

By the end of 2014, the SCORE programme that was launched in early 2012 is intended to improve the Group's operating result by at least EUR 1.5bn compared with 2011. The measures include greater cooperation between Lufthansa and Germanwings, which, having combined frequent flyer programmes and bookings, will now also run joint capacity planning for decentralised traffic from Düsseldorf, Berlin, Hamburg, Stuttgart and Cologne. A new code-sharing agreement has also been in place between Austrian Airlines and Germanwings since March 2012.

Lufthansa also intends to make sustainable savings of EUR 200m in this year alone by means of a Group-wide purchasing project. Double-digit million euro savings are also expected from the optimisation of local traffic within the airline group. Furthermore, costs in administrative areas are to be cut by 25 per cent. The Group intends to realise a total of one third of the SCORE volume by reducing staff costs. This is to be achieved by merging duplicate functions and eliminating activities which create no added value for the customer, as well as by outsourcing activities to Shared Services units. These measures are expected to result in the loss of 3,500 full-time jobs in administrative departments worldwide over the coming years. Christoph Franz emphasised, "We can only safeguard jobs for the long term and create new openings if we reorganise the administrative functions and accept job losses now." The aim was to achieve the cuts preferably by means of socially responsible measures, he added.

Lufthansa Passenger Airlines contributes more than EUR 900m to SCORE

With regard to the Passenger Airline Group segment, Franz notes that, "Growth in the passenger business was and is necessary to maintain the market position of the Lufthansa Group. The logical and predictable next step is to reduce the complexity in the Group that this growth has brought about." As the largest company in the Group, Lufthansa Passenger Airlines will contribute more than EUR 900m to the earnings improvement programme, of which EUR 600m is to come from cutting costs and EUR 300m from boosting revenue. This is to be achieved partly by cancelling loss-making routes and restricting capacity growth, which has been set at zero for 2012 and a maximum of four per cent for the years 2013 and 2014 each. This means that the company's fleet will not be enlarged until 2014 and new aircraft will replace older ones. By 2020, only four different fleet families should then be in service in European traffic at Lufthansa Passenger Airlines. "We will make the changes where it makes no difference to customers or where it actually constitutes an improvement", said Franz. The company increased the share of First and Business Class revenue on long-haul routes from 53.6 per cent in the same period last year to 54.9 per cent in the first quarter of 2012. Lufthansa intends to remain the European airline with the most First Class seats by far. Never before in the history of the company has Lufthansa invested so much in its product, according to Franz. As he remarked, all Lufthansa aircraft are currently equipped with new seats, on long-haul routes First, Business and Economy Class are new, there are more Lufthansa Lounges than ever and the new airport in Berlin as well as new terminals in Frankfurt and Munich will bring advantages to Lufthansa customers.

For the first quarter of 2012, Lufthansa Passenger Airlines, including Germanwings, reported an operating loss of EUR 384m. The Passenger Airline Group segment as a whole incurred a loss of EUR 445m for the period. SWISS contributed an operating loss of EUR 6m to this result and Austrian Airlines sustained an operating loss of EUR 67m. The company adopted a work programme representing savings of at least EUR 220m, which includes reductions in staff costs. In this context the company decided a few days ago to transfer flight operations from Austrian Airlines to Tyrolean Airways with effect from 1 July 2012, as the negotiated solution to restructure flight operations was not successful.

Service segments exert stabilising effect on consolidated operating result

By the end of the first quarter of 2012, Lufthansa Cargo generated an operating profit of EUR 19m. The decline of EUR 45m compared with last year's strong quarter was due to the steep rise in fuel prices. In the first quarter of 2012, the service companies in aggregate also generated an operating profit of EUR 60m. This is made up of an operating profit at Lufthansa Technik of EUR 62m, an operating profit of EUR 3m from Lufthansa Systems and an operating loss of EUR 5m at LSG SkyChefs.

Group anticipates operating profit in mid three-figure million euro range for 2012

For the full year 2012, the Group is still expecting revenue growth compared with the previous year. The operating profit is predicted to be in the mid three-figure million euro range. After a difficult start to the year, the expectation of persistent cost pressure over the remainder of the year appears from today's perspective to have been prescient, in particular with regards to fuel. The prevailing economic uncertainty makes developments in demand difficult to forecast. The mood has lightened overall, however, and this, together with capacity discipline across the industry allows the airlines to manage yields and pricing actively. The extent to which these can be established on the market will determine earnings development in 2012 as much as the success of cost measures. We again expect the Group's service companies to have a stabilising effect on earnings performance. Any restructuring costs in connection with job losses as part of SCORE are not included in this earnings forecast and may have an adverse effect on the result for the current financial year. They will be quantified as the earnings improvement package progresses.

The first quarter of 2012 in figures

In the first quarter of 2012, the Lufthansa Group's revenue totalled EUR 6.6bn - an increase of 5.6 per cent on the same period last year. Traffic revenue improved by 5.6 per cent to EUR 5.3bn. Overall, the Group's operating income went up to EUR 7.2bn in the reporting period, an increase of 2.5 per cent.

Operating expenses rose by 6.1 per cent in the first quarter to EUR 7.6bn. One of the main reasons was the EUR 304m rise in fuel costs, which came to EUR 1.6bn in total. This represents an increase of 23 per cent. This figure already includes a positive hedging result of EUR 114m. Fees and charges were up 4.9 per cent on the previous year.

The Lufthansa Group reported an operating result of EUR -381m in the first quarter, down by EUR 212m in comparison with the previous year. The net result for the period was EUR -397m. Last year, the figure came to EUR -507m and was primarily due to a negative valuation effect resulting from changes in the time values of hedging transactions according to IAS 39. The net loss for the period also includes the result of EUR 2m from discontinued operations at bmi. Earnings per share consequently came to EUR -0.87.

Lufthansa invested EUR 592m in the reporting period. Of this sum, EUR 527m went on expanding and modernising the fleet. Cash flow from operating activities came to EUR 833m and free cash flow (cash flow from operating activities less net capital expenditure) to EUR 540m. At the end of the first quarter, the Group had net debt of EUR 2.1bn. Its equity ratio was 26.3 per cent.

Lufthansa 03.05.12

Queen of the Skies with new Lufthansa Business Class / First scheduled flight on 1 June from Frankfurt to Washington

The new Queen of the Skies has arrived in Frankfurt. Today Lufthansa became the first airline in the world to take delivery of a Boeing 747-8. After the handover at Boeing’s manufacturing facility in Everett, Washington, the new “Jumbo” with the registration D-ABYA performed a touch and go at Hamburg Airport, where Lufthansa Technik is based, before flying on to its future home base in Frankfurt, where it landed safely.

On 1 June, the world’s first passenger flight with a Boeing 747-8 aircraft will depart from Frankfurt as flight LH 418 bound for Washington Dulles International Airport in the US capital, Washington DC.

“We are looking forward to welcoming the Boeing 747-8 Intercontinental to our long-haul fleet. In future we will offer our passengers on board this completely newly developed long-haul aircraft an exclusive travel experience and the comfort of our new Business Class. The Boeing 747-8 is characterised by lower noise emissions, lower fuel consumption and significantly reduced CO2 emissions. That enables us to combine maximum comfort with sustainability,” Lufthansa Executive Board member Carsten Spohr said at the large reception held at Frankfurt Airport.

“We are proud to celebrate this important milestone together with Lufthansa, our partner of more than 50 years and the launch customer for the new 747-8 Intercontinental,” said Elizabeth Lund, Vice President and General Manager 747, Boeing Commercial Airplanes. “Lufthansa has contributed greatly to this new and efficient aircraft. And Lufthansa passengers will experience a new level of comfort on the 747-8 Intercontinental, which is truly the Queen of the Skies for the 21st century.”

When the new 747-8 enters scheduled service on 1 June 2012, Lufthansa passengers will have their first opportunity to experience the new Business Class. The new seat offers exceptional comfort for passengers in a sitting or recumbent position, intuitive adjustment features, additional storage space and an individual entertainment system with much larger, 15-inch screens. At the press of a button, the seat converts into a comfortable bed with a horizontal sleeping surface measuring 1.98 metres in length. The aircraft also features an entirely new seating arrangement in the form of a “V”. Two neighbouring seats are angled towards one another along a central axis. This virtually doubles the distance at shoulder level between the seats, giving Business Class passengers even more privacy.

For the first time, First Class passengers will be seated in the front section of the main deck, the quietest part of the aircraft. On the B747-8, this area is exceptionally quiet – thanks to the outer skin insulation, sound-absorbing curtains, which minimise specific noises, and the sound-deadening material used in the aircraft flooring. Each of the eight First Class seats can be converted into a lie-flat bed, which is 2.07 metres long and 80 cm wide, enabling passengers to enjoy a deep, relaxing sleep. With the new Business Class, the exclusive First Class and the refined design of the Economy Class seat, the new Jumbo offers passengers in all classes the ultimate in travel comfort.

The Boeing 747-8 is a completely new aircraft that builds upon the positive features of the Boeing 747 series, which has been Lufthansa’s long-haul workhorse for the past 40 years. The aircraft boasts significantly improved aerodynamics and newly developed wingtips, and also provides tangible improvements in terms of eco-efficiency. The Gent GEnx-2B engines use less fuel and achieve a substantial 15 per cent reduction in fuel consumption and CO2 emissions per passenger. In addition, noise emissions have been reduced by 30 per cent.

The Boeing 747-8 is 76.3 metres long, 5.6 metres longer than its predecessor, the Boeing 747-400. The new Lufthansa Jumbo can seat 362 passengers: eight in First Class, 92 in Business Class and 262 in Economy Class.

Lufthansa will take delivery of 20 Boeing 747-8s up until 2015. The first five aircraft are due to be delivered to Lufthansa this year. They will be deployed on routes from Frankfurt to Washington D. C, New Delhi, Bangalore, Chicago and Los Angeles.

Illustrative material and other information can be downloaded from the Internet at: http://konzern.lufthansa.com/en/themen/ ... 747-8.html

Deutsche Lufthansa AG Communications Lufthansa German 02.05.12

New flagship will fly to Washington, Los Angeles, Chicago, Delhi and Bangalore

From today, passengers can book flights on Lufthansa’s first Boeing 747-8, which has just been delivered from Seattle. From 1 June, Lufthansa will operate six flights per week with the “Queen of the Skies” on the Frankfurt-Washington route. Over the next few months, as four more new Jumbo jets join the fleet, the number of destinations served by the aircraft will be gradually increased. By late summer, 747-8 flights will be offered to Delhi, Bangalore, Chicago and Los Angeles.

Once the 747-8 enters scheduled service, passengers will also have an opportunity to enjoy Lufthansa’s revamped Business Class. The new Business Class seat provides exceptional comfort, whether in an upright or reclined position or as a lie-flat bed, plus intuitive adjustments, additional storage space and an enhanced inflight entertainment system. At the press of a button, the seat converts into a comfortable bed with a horizontal sleeping surface measuring 1.98 metres in length.

The 747-8 Intercontinental will bring double-digit improvements in fuel efficiency and CO2 emissions per passenger over its predecessor, the 747-400. It is also much quieter, and generates a 30 per cent smaller noise footprint. A wealth of information about the “Queen of the Skies” is available at www.lufthansa.com/747-8 The website also features a competition with the chance to win two flights with the Boeing 747-8.

Deutsche Lufthansa AG Communications Lufthansa German Airlines 27.04.12

New addition to Lufthansa route network / Service will be operated from Munich

Lufthansa is launching a new route to Rotterdam. From 1 October 2012, the twice-daily service will be operated from Munich with a Lufthansa CityLine CRJ-900. “With this new service we will offer our customers convenient connections to the economic region centred around Rotterdam and The Hague. These cities will also have direct links to other destinations in Europe and worldwide via our Munich hub,” says Thomas Klühr, Member of the Lufthansa German Airlines Board, Munich & Direct Services.

Rotterdam, which has a population of 600,000, is the second-largest city in the Netherlands and is the world's third-largest port. The airport is also the gateway to The Hague, the country's third-largest city. Lufthansa's new service will connect this strong economic region via Munich to 70 further destinations in Europe and worldwide.

Round-trip flights from Munich to Rotterdam can be booked now for as little as 99 euros. This fare applies in Economy Class and is inclusive of all taxes, fees and the Lufthansa Ticket Service Charge for online bookings made through www.lufthansa.com. Miles & More members can earn miles on these flights. More information about the new direct connection is available on the Lufthansa website. Reservations can be made online or via the Lufthansa Call Center on 01805 805 805 (€0.14/min). Customers can also book their flights through Lufthansa travel agency partners or at Lufthansa sales counters at airports.
The new route at a glance

Munich – Rotterdam

Airports/Three-letter code/Time zone (summer)
Munich (MUC); UTC + 2 hour
Rotterdam (RTM); UTC + 2 hour

Flight schedule (all times are local times)
NEW from 1 October 2012
LH 2314 Munich 06.35 hrs – Rotterdam 08.05 hrs
LH 2315 Rotterdam 08.40 hrs –Munich 10.05 hrs

LH 2316 Munich 17.05 hrs – Rotterdam 18.35 hrs
LH 2317 Rotterdam 19.10 hrs -Munich 20.35 hrs

Flight duration (average): Munich – Rotterdam: 1 hour 30 mins
Distance: 660 km / 410 miles
Aircraft type: Lufthansa CityLine Canadair Jet CRJ-900
Seating capacity: 86 seats

Deutsche Lufthansa AG Corporate Communications Southern Germany 25.04.12