Deutsche Lufthansa’s profit up 12% in 2005

Deutsche Lufthansa’s profit up 12% in 2005

   Deutsche Lufthansa AG, parent company of Lufthansa, Lufthansa Cargo and now Swiss International Airlines (SWISS), posted a net profit of 453 million euros ($542 million) in 2005, up 12.1 percent from 404 million euros in 2004.

   The group’s annual operating profit soared 50.7 percent to 577 million euros ($691 million), compared to euros 383 million in the previous year. Group revenue improved 6.5 percent to 18 billion euros ($21.6 billion) from 17 billion euros a year before.

   Fuel costs for the year increased 46.3 percent to 2.7 billion euros ($3.2 billion).

   “We aimed high in 2005 and have achieved more than expected — despite record oil prices,” said Wolfgang Mayrhuber, Lufthansa’s chief executive officer and chairman.

   During 2005, Lufthansa acquired struggling SWISS for about $400 million. “Synergies are surfacing faster and to greater effect than we targeted. The Swiss carrier is expecting to break even this year and return a profit in 2007,” Mayrhuber said.

   Deutsche Lufthansa said it expects a similar operating result for 2006 and is targeting an operating profit of 1 billion euros ($1.2 billion) by 2008.