Christoph Franz, chief executive of Lufthansa, has stated that acquisitions are a low priority, brushing off rumours that the German airline is on the brink of taking over Scandinavian airline SAS or Polish LOT.
Franz said that Lufthansa has enough to do integrating the companies it had recently acquired – Austrian Airlines, BMI and Swiss – as well as remaining competitive in Europe in the face of increased competition from Gulf carriers.
Lufthansa has posted increased operating profits from €130 million in 2009 to €876 million, this came despite being hit by strikes, volcanic eruptions, snow disruption and high oil prices. The airline benefited from the recovery in the market and rapid growth in German exports that saw cargo earning rise by 43.3% to €2.8 billion.
Franz said he expects operating profits to improve during 2011 and is aiming for an 8% operating margin, up from the 4.1 per cent achieved in 2010. Although he stated that the airline is likely to be hit by the deteriorating situation in Japan.