Lufthansa profits beat estimates despite strike

The Associated Press, Frankfurt | Business | Wed, October 31 2012, 2:33 PM

German airline Lufthansa says profits jumped 30 percent in the third quarter despite a strike and higher fuel prices.

The airline credits cost cuts and says it was helped by better earnings from its non-passenger businesses such as repairing and catering other companies' planes.

CEO Christoph Franz said Wednesday the company would intensify its cost cutting efforts. He says that "we don't have the level of profitability that we need."

Net income rose to €642 million ($832 million) from €494 million in the year-ago quarter, beating analyst estimates for €225 million. Revenue rose 6.2 percent to €8.31 billion.

Strikes by flight attendants between Aug. 31 and Sept. 7 cost the company €33 million.

Lufthansa has been cutting costs to deal with tougher competition from no-frills airlines and state-owned carriers in the Middle East.