Lufthansa hopes to keep profits flying despite turbulence

German flag carrier Lufthansa said Thursday it hoped to improve operating profit and turnover next year despite turbulent times, as it announced a 36-percent drop in operating profit in 2012.

Operating profit plunged by 36.1 percent compared with the previous year to stand at 524 million euros (RM2.11 billion) -- a decline the firm blamed on a much higher fuel bill than in 2012.

Overall turnover was up 4.9 percent to 30.1 billion euros (RM 121.36 billion) and net profits also rose strongly thanks to one-off gains from the sales of its British Midland airline and shares in the parent group, it said in its annual earnings statement.

"2013 will be a particularly challenging year for the companies and their employees," warned Lufthansa chief executive Christoph Franz, whose group comprises several airlines including Austrian Airlines and SWISS.

Last year, the group launched a huge restructuring programme in a bid to boost operating profit by 1.5 billion euros (RM6.05 billion) in 2015 compared to the 2011 level.

As part of this programme, dubbed SCORE, Lufthansa introduced some 800 cost-cutting measures that contributed some 618 million euros (RM2.49 billion) to the firm's turnover.

"The Lufthansa Group expects to make further progress with SCORE and to improve its operating result in 2013," the firm forecast, confirming preliminary earnings results published in February.