One Airline Is Carrying the Lufthansa Group – It Isn’t Lufthansa

Swiss International Air Lines made more money in the second quarter than the entire Lufthansa Group division it sits inside.

The Zurich-based carrier delivered adjusted earnings of €174 million ($200m) in the quarter, while the network airlines as a whole — Swiss alongside Lufthansa, Austrian, and Brussels Airlines — managed €137 million ($158m). Of the brands Lufthansa breaks out, only Austrian made money, and not enough to cover the losses at Lufthansa Airlines and Brussels.

Across the last two quarters the concentration is even more pronounced. Swiss earned €213 million ($245m) between January and June while the group as a whole lost €229 million ($263m), dragged down by a loss at Lufthansa Airlines of €480 million ($552m). Better results from maintenance and cargo divisions have historically softened the blow at a group level.

Fueling Losses

Rising fuel bills did most — but not all — of the damage. While group revenue rose 8%