Lufthansa raises profit forecast as operating earnings surge

Lufthansa raised its financial forecast after operating profit almost doubled in H1. Adjusted earnings before interest and taxes in 2017 will rise “above the previous year,” Lufthansa said Monday. That topped the German airline’s earlier prediction that the measure would be slightly below. The improved outlook underscored the strong passenger demand that has helped push Lufthansa shares to a nine-year high. The carrier has capitalised by leasing extra aircraft from ailing rival Air Berlin and from the full takeover of Brussels Airlines, which enabled Lufthansa to expand its Eurowings low-cost arm. “The results of the first half year show that all efforts put forth by our staff in all business units are clearly paying off,” CEO Carsten Spohr said. “We are especially pleased with the success of Eurowings,” he said, adding it is highly probable that Eurowings will achieve “positive results.” Adjusted Ebit almost doubled in the first six months to E1.04b from E529m a year earlier, on “strong demand” for tickets. Revenue rose E2b to E17b, Lufthansa said. Pre-bookings for Q3, seasonally the most important period, have “stabilized,” the airline said. Q2 unit revenue increased 1.8% excluding currency effects, while unit costs excluding fuel and currency effects declined 3.4%, Lufthansa said. Both costs and unit revenue will fall in the second half, the airline said.<br/>