Capacity adjustment Passenger Airline Group (bar chart)

Fuel prices affect earnings development

Sales in passenger traffic tailed off sharply over the course of 2011. At the same time, the persistently high oil price had an adverse effect on the airlines’ profitability worldwide. Oil price movements will again have a major impact on the earnings performance of the Passenger Airline Group in 2012, especially as at current price levels the hedging policy has barely an effect, unlike in the previous year.

The companies in the Passenger Airline Group are therefore anticipating challenging conditions again in 2012 and have taken appropriate steps to safeguard earnings. In this context, they have also reduced their planned capacity growth for 2012 from 9 per cent beforehand to 3 per cent. The market is monitored closely and, depending on further developments, the companies will use their flexibility to make further adjustments. Information on the activities and forecasts of the individual companies can be found in the relevant comments on the following pages.

Altogether, the Passenger Airline Group segment is expected to increase revenue in 2012 and to generate an operating profit. The amount will depend largely on the conditions described above, in particular the development of oil prices, so that a more precise statement is not possible at the present time. From today’s perspective and subject to the same limitations on forecasting accuracy, further positive developments in revenue and the renewed achievement of an operating profit are expected for 2013.

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