Lufthansa enjoys solid 2Q but first half loss widens

Lufthansa posted strong second quarter result, reporting a EUR301 million net profit for the period, a 55% year-on-year increase. The EUR203 million operating profit in 2Q was enough to push the group into the black at the operating level for the first half, with Lufthansa posing a EUR3 million operating for the six-month period. Its net loss for the half, however, doubled to EUR206 million.

Lufthansa’s half-year results missed expectations after the impact of some major events in the period were larger than previously reported. Lufthansa’s result was dragged down by Japan 's earthquake and subsequent disasters, crises in North Africa and the Middle East and most significantly, an accounting rule that takes into account the cost of coverage options - primarily fuel hedging - against oil price changes. Ineffective derivative positions saw “other financial items” slump EUR417 million in the half to EUR-309 million.

“While the outlook was thoroughly positive for the global economy and the aviation industry at the beginning of 2011, prospects have become much more differentiated since the outbreak of political unrest in North Africa and the Middle East and the earthquake in Japan,” senior management said. “Thanks to our operating flexibility, we were able to react relatively quickly to the new conditions and adjust our flight plans and workflows to the new business climate. At the same time, however, the increased oil price had an adverse effect on business.”  

Strong revenue performance

Strong revenue growth was driven by the passenger airline group, which significantly improved over the 2010 result. But there were uneven results within the increasingly diverse Lufthansa group, which includes Lufthansa Passenger Airlines, SWISS , Austrian, bmi and Germanwings . 

For the half, top-line revenue increased 11.4% to EUR14.06 billion, exceeding the growth in passenger numbers, which increased 10.1% to 50.23 million. The top line result includes revenues from the passenger airlines group, logistics, MRO, Catering and IT services. Passenger traffic revenue, which more closely captures the pricing environment, increased 13.7% to EUR11.6 billion, demonstrating the ongoing, although increasingly fragile, recovery in European air transport markets. Lufthansa noted that the recovery has been disrupted by the crises in Japan, North Africa and the Middle East.

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New way to find management consulting templates

I first found Lillilooloo.com around 11pm on a Thursday night after a long and wasted evening spent trying to develop supply-chain analyses for a client. It is a site dedicated to management consultants and offers 3 basic services: 1) A free platform to share management consulting documents. 2) A back-office whereby users can commission the Lillilooloo.com team to produce reports and research. And, 3) a template store where users can sell their own documents for a fee. Three needed services rolled into one.

It is primarily a new user-generated content marketplace allowing anyone with the appropriate know-how and assets to upload, describe, tag and publish any professional document that may be of interest consultants, businesses and students. Users can also choose to sell documents on the site. So this works quiet well. Users can load teasers on the free site and documents for a fee in the template store. The documents in the free site are also very high quality.

This new site is unique in that I have never seen such a useful content marketplace to share high quality consulting documents. Users can easily upload, share and control their documents. What I found particularly nice was the access to so many documents for free. Most sites would have erected a pay wall. It seems they have chosen to make the documents free to drive traffic. This is a great strategy.

It does get better. When using the template store, Lillilooloo.com keeps just a fraction of the sales amount as a logistics fee. While some companies charge upwards of 30%, Lillilooloo.com charges just a 2% administration fee and the user keeps the rest. I also like the fact that they provide editorial guidance for documents submitted to the template store. This helps ensure consistency and quality.

KEY FEATURES/SERVICES

Lillilooloo.com, the new site for sharing high quality user-generated consulting and business documents, offers some very useful and sophisticated features across 3 services:

1.       A platform to upload, share and download high quality documents for free.

2.       A research back-office whereby reports can be commissioned from Lillilooloo.com for a fee and managed through the site.

3.       A marketplace to set a price and sell documents.


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