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Lufthansa, Air France - KLM Post Lower Profit In Q3


German carrier Deutsche Lufthansa AG (DLAKF.PK,DLAKY.PK) Thursday reported a lower third-quarter profit, reflecting a decline in revenues. Franco-Dutch airline Air France - KLM (AFLYY.PK, AFRAF.PK) said its third-quarter profit more than halved from last year, amid a difficult operating environment.

In the third quarter, net profit attributable to shareholders of Deutsche Lufthansa fell 30.3 percent to 451 million euros from 647 million euros in the previous year. Earnings per share were 0.98 euros, lower than 1.42 euros per share a year ago.

Earnings before interest, taxes, depreciation and amortization or EBITDA fell 11.8 percent to 1.18 billion euros.

Total revenues for the quarter edged down 0.1 percent to 8.30 billion euros.

During the quarter, Lufthansa's number of passengers grew 2.3 percent to 30.305 million, and passenger load factor improved 0.7 points to 84.1 percent.

Looking ahead to the end of the year, the company expect that markets and exchange rates will remain volatile, and that performance will vary from one region to another.

For the full year 2013, the Lufthansa Group now anticipates that revenue will be on a par with last year and still that the operating result will exceed that of 524 million euros reported for the 2012 financial year.

Based on performance to date, the revised higher forecast for the non-recurring costs of implementing SCORE and the state of advance bookings, an operating result of 600 million euros to 700 million euros is expected for the full year. This includes non-recurring expenses of 300 million euros. The result after adjustment for one-off effects is therefore expected to be between 900 million euros and 1.0 billion euros.

Air France - KLM said its net result, group share, for the third quarter fell to 144 million euros from 306 million euros, and earnings per share slid to 0.41 euro from 0.82 euro last year. The last year's results are on a published basis.

The net result included income tax of 140 million euros and a negative 137 million euros relating to the share in the results and the depreciation of the residual value of Alitalia shares.

For the quarter, operating result was at 634 million euros, higher than last year's published result of 506 million euros.

Revenues for the quarter edged up 0.4 percent to 7.21 billion euros and was up 3.8 percent at constant exchange rates. Unit revenues measured in equivalent available seat kilometres or EASK declined 1.5 percent, but was up 1.7 percent on a constant currency basis.

Third party maintenance revenues rose 19.5 percent and leisure business revenues were up 8 percent.

In the quarter, traffic improved 2.5 percent from proforma figure in 2012 period, Capacity was up 1.4 percent, and load factor improved 0.9 points to 86.9 percent.

Based on a fuel bill and highly volatile economic environment, the Group said it is maintaining its target of an improvement in second half operating result in line with that of the first half.

Deutsche Lufthansa shares are currently down 0.99 percent at 14.54 euros.

In Paris, Air France - KLM shares are trading at 7.74 euros, up 0.26 percent.

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