Lufthansa To Reduce Losses

Lufthansa grounded aircraft to cut costs

One of Europe's largest airlines, the German carrier Lufthansa, has reduced its net loss during the first six months of this year. The carrier has pushed through capacity and cost cutting measures, grounding aircraft and ditching some routes.

Lufthansa's net loss came in at 27m euros for the January to June period, a sharp improvement on last year's 43m euros.

"Despite the sluggish economic climate and the aftermath of the terror attacks, we performed outstandingly," chief executive Juergen Weber said.

Operating profits, excluding interest payments and tax, trebled to 332m euros and should rise even further to at least 500m euros by the end of the year, Lufthansa predicted.

Lufthansa's net debts were slashed by 1.1bn euros to 2.7bn euros during the first half of this year.

In 2001, Lufthansa's net loss reached 633m. The airline did not pay its shareholders a dividend.

This year, the result could be much better, especially if an anticipated pick-up in economic growth in Germany materialises.

Lufthansa shares gained more than 3% in early trading.

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