Lufthansa Group posts $144 million net profit in second quarter

Lufthansa Group posts $144 million net profit in second quarter    Deutsche Lufthansa AG, parent company of Lufthansa and Lufthansa Cargo, reported second quarter net profit of 116 million euros ($144 million), compared to a net loss of 23 million euros in the year-earlier quarter.
   The Lufthansa group’s second quarter operating income soared 87.2 percent to 279 million euros ($346 million), from 149 million euros. Group revenues rose 4.1 percent to 4.54 billion euros ($5.64 billion).
   For the year-to-date, Lufthansa said its net income was down 99 percent to 200,000 euros ($248,332), compared to 39 million euros in the same period last year. Lufthansa said last year’s comparable first half net profit was boosted by the capital gain of 39 million euros ($48.4 million) from the sale of an equity stake in Amadeus Global Travel Distribution S.A.
   Operating income for the first six months increased 666 percent to 253 million euros ($314.1 million) from 33 million euros in the first half 2004. Revenues increased a more modest 2.4 percent to 8.45 billion euros ($10.5 billion).
   The group’s fuel costs jumped 41.8 percent to reach a record high at the halfway stage of the year at 1.1 billion euros ($1.36 billion).
   “Despite this good result we face major challenges. The continuing high oil price, excess capacity and pressure on average yields, an inadequate infrastructure and an uneven playing field require great vigilance and stringent cost control,” said Wolfgang Mayrhuber, Lufthansa’s chief executive officer.