MIAMI — Lufthansa Group posted a $1 billion profit during the nine months ended September 30, up $238.3 million year over year. The parent company of the German flag carrier expects a $1.2 billion operating profit for the year if there are no further strikes by the end of the year.
The airline’s third quarter operating profit was $926.8 million, up $182.8 million year over year. Lufthansa said that a strike by pilots cost $214.3 million. In addition, nine-month results for the passenger airline segment were also depressed by strong competitive pressures and associated yield declines.
Carsten Spohr, chairman and CEO of Deutsche Lufthansa AG noted that the company is making “huge” investments in quality and service for customers; and adopting new structures and innovative business models to tap into new growth opportunities and new customer groups.
The Passenger Airline Group, which includes Lufthansa, SWISS, Austrian Airlines and Brussels Airlines, reached an operating profit of 596.6 million, down $51.7 million in the first nine months of the year. Lufthansa German Airlines contributed $328 million, down $70.6 million, to the bottom line. The group blamed the airline’s drop in profits on falling yields and the pilots’ strikes.
The group spent $2.3 billion between January and September in modernizing and maintaining its aircraft fleet. Lufthansa currently has 59 aircraft on order, including 34 Boeing 777-9Xs and 25 Airbus A350-900s.