* H1 fuel costs up 24.6 pct at 3 bln eur
* H1 operating profit 3 mln eur vs yr-ago loss of 171 mln
* Sees 2011 fuel costs at 6.4 bln eur vs 6.5 bln previously
* To lift winter capacity by 6 pct vs 12 pct planned
* Shares down 3.4 percent
( Recasts, adds shares, comment)
By Victoria Bryan
FRANKFURT, July 28 Lufthansa joined
other airlines in reporting results battered by high fuel costs,
and said capacity would not grow as quickly as previously
planned over the winter.
Fuel costs soared 24.6 pct to 3 billion euros ($4.3 billion)
in the first half, Lufthansa said in its interim report on
However, it has reduced its forecast for expected fuel
expense in 2011 by 100 million euros to 6.4 billion, according
to presentation slides.
While air travel has picked up after the 2008/2009 global
downturn, fuel costs, political unrest and a drop in traffic
caused by the March 11 Japanese earthquake and tsunami are
causing headaches for airlines across the world.
Late on Wednesday Air France-KLM posted a 212
million euro quarterly net loss, while over in the U.S., shares
in Delta Air Lines fell to a year low after it said fuel
costs grew at a higher rate than revenue.
Shares in Lufthansa were down 3.4 percent at 0749
GMT, among the biggest fallers on the blue-chip DAX index
. Air-France plummeted 8.5 percent in Paris.
Deutsche Bank analyst Michael Kuhn said
Lufthansa's first-half results fell short of his and consensus
"We think it will be crucial how the company comments on
what has impacted the second quarter, and how those factors are
expected to develop in H2," he wrote in a note.
Lufthansa said late Wednesday it had scraped a small
operating profit of 3 million euros in the first half of the
year and confirmed guidance for a rise in 2011 revenue and
On Thursday it promised "extensive restructuring, where
necessary" as it reported that UK airline BMI is unlikely to
improve its operating result this year.
"Demand on the Japanese routes has begun to recover, which
we see as grounds for optimism," it said.
The company said it would increase capacity on its
winter timetable by 6 percent, rather than 12 percent, by
postponing new routes, cutting back flights, and as a result of
discontinuing Lufthansa Italia.
($1 = 0.695 Euros)
(Editing by David Hulmes)