Higher oil price pushes up operating expenses


Operating expenses went up by 7.4 per cent to EUR 2.8bn in the period reporting. This increase was largely driven by higher cost of materials and services, which was up 10.7 per cent at EUR 2.0bn. In line with the steep rise in the kerosene price, fuel expenses soared by EUR 139m to EUR 502m (+38.3 per cent). Fees and charges went up by 6.0 per cent, mostly due to greater volumes, to EUR 299m.

Operating expenses Logistics

 

2011
in €m

2010
in €m

Change
in %

Cost of materials and services

2,043

1,846

10.7

of which fuel

502

363

38.3

of which fees

299

282

6.0

of which charter expenses

1,023

996

2.7

of which MRO services

129

125

3.2

Staff costs

347

338

2.7

Depreciation and amortisation

83

107

–22.4

Other operating expenses

299

289

3.5

Total operating expenses

2,772

2,580

7.4

Higher fees for belly capacities, i.e. the cargo space on passenger aircraft flown by Lufthansa Passenger Airlines and Austrian Airlines, caused charter expenses to rise by 2.7 per cent to EUR 1.0bn. The more intensive use of the fleet and the ensuing increase in maintenance inspections meant that MRO expenses were 3.2 per cent higher than in the previous year at EUR 129m.

Staff costs picked up by 2.7 per cent to EUR 347m because of higher basic pay as well as a slight increase in staff numbers. Pilot capacities were strengthened as laid-up aircraft were brought back into service. In the reporting period the business segment had an average of 4,572 employees, or 2.3 per cent more than the previous year.

Depreciation and amortisation was 22.4 per cent lower than in the previous year at EUR 83m. This was mainly because depreciation of the MD-11 freighters had come to an end.

Other operating expenses totalled EUR 299m (+3.5 per cent). Travel expenses, Group services, rental and maintenance expenses and write-downs on receivables went up year on year, whereas exchange rate losses and agency commissions were lower.

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