FRANKFURT: German airline group Lufthansa confirmed its objectives for the full year Wednesday, even as its third-quarter profit fell.
Between July and September — the key summer holiday period for European carriers — Lufthansa’s net profit fell by 17 percent year-on-year to €1.18 billion (SR5.2 billion).
But the decline was largely due to an accounting effect, the airline said in a statement.
In the third quarter of 2016, Lufthansa’s bottom line had been boosted by the elimination of provisions following a pay and pensions deal with staff.
The third-quarter figure for this year nevertheless beat analysts’ expectations.
And underlying or operating profit increased by 32 percent to €1.52 billion, on the back of an 11-percent increase in revenues to €9.81 billion.
The result “gives us the investment and growth capabilities we need to play an active part in the consolidation of the European airline market,” chief executive Carsten Spohr said.
In its rapid expansion, Lufthansa has snapped up more than half the aircraft belonging to bankrupt former competitor Air Berlin and recently made an offer to take over some European routes belonging to Italy’s Alitalia.
For the full year, Lufthansa confirmed its forecast for an increase in operating profit from the €1.75 billion reported in 2016.
Germany’s Lufthansa says third-quarter profit down
Germany’s Lufthansa says third-quarter profit down
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
