Always in the red - Trends-Tendances on PC

Always in the red – Trends-Tendances on PC

Lufthansa Group reported a return to profit in the second quarter. A result entirely due to freight. Brussels Airlines remains loss-making but has reduced its losses.

Little by little, European airlines are returning to profit, albeit timidly. A feat, given the inflationary context, the strike movements and the cancellations in shambles due to the shortage of manpower. Last week, Lufthansa reported in its second quarter results a net profit of 259 million…

Little by little, European airlines are returning to profit, albeit timidly. A feat, given the inflationary context, the strike movements and the cancellations in shambles due to the shortage of manpower. Last week, Lufthansa reported in its second quarter results a net profit of 259 million euros. The German group now expects at least 500 million operating profit at the end of the year. Beware, however, of the mirror of the larks: this good result, Lufthansa owes it only to its freight division which garnered an Ebit of 1 billion euros over the period, for a margin of 40%. Its five passenger companies are still in the red with a cumulative loss of nearly 1 billion euros despite the quadrupling of passengers compared to last year: 42 million. As you have understood, Brussels Airlines is therefore still in the red. Over the first half as a whole, the company also quadrupled its number of passengers (2.7 million and occupancy rate of 72.6%) and tripled its turnover to 452 million euros. But at the same time, its operating expenses increased by 97% to 572 million euros. An increase obviously linked to the increase in the volume of work but also to the inflation of wage costs (automatic indexation of 6%) and fuel prices. Not to mention the depreciation of the euro against the dollar, the summer cancellations and the three-day strike. This results in an Ebit of -89 million euros in the 1st half. Much less, that said, than a year ago (-143 million). In this context and given the health uncertainty of this fall, ending the year in the green already looks very complicated.

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