KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comLufthansa 3Q net income up 23 pct to €184 million
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FRANKFURT (AP) - German airline operator Deutsche Lufthansa AG said Thursday net income in the third quarter rose 23 percent because of the addition of new group airlines.
But the company reported a loss in the first nine months on lower passenger levels and prices while fuel costs rose.
Lufthansa, Europe's biggest airline by sales, said net income for the July-September period rose to €184 million ($270 million) compared with €149 million in the year-ago quarter. Those results were helped by the first-time inclusion of earnings from Austrian Airlines and British Midlands.
Third quarter revenue, though, fell 9.4 percent to €5.9 billion from €6.5 billion, as overall demand and prices fell.
Lufthansa also owns or holds stakes in airlines including Swiss International Airlines, Brussels Airlines and JetBlue of the U.S.
In addition to falling passenger levels and prices, the company said its cargo division has also felt the effects of the downturn as air freight volumes have also declined sharply.
On Wednesday, Lufthansa said it lost €32 million in the January-September period, compared with net income of €529 million in the first nine months of 2008.
Revenue for the first nine months fell 13 percent to €16.2 billion from €18.6 billion a year ago.
Shares of Lufthansa were up 2 percent to €10.58 after it announced its quarterly figures.
Lufthansa, based in Cologne, said the results of the fourth quarter will be decisive to whether the company can meet its target of achieving a stable operating result for the full year.
"The market environment for passenger transportation is still very difficult," the airline said, adding that initial signs "of a stabilization in volumes are far away from making up for the enormous and unrelenting pressure stemming from the massive fall in price levels."
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