Lufthansa sees record quarterly sales, but profits slip

German flag carrier Deutsche Lufthansa reported record sales in the third quarter and said winter bookings were above last year, though profits were nearly a tenth lower than last yearT

The airline reported its strongest revenue quarter in its history, generating sales of €10.7bn in the three months to 30 September, up from €10.3bn the year before, helped by a higher number of flights and revenue growth at its maintenance and repair services unit Lufthansa Technik.

The company flew 40m guests during the period, up 6% on last year, with a seat load factor – a key measure of how full airlines' planes are – at 87%, up from 86% the year before.

However, operating profits declined to €1.3bn from €1.5bn previously, as operating margins fell to 12.5% from 14.3% as a result of cost increases, personnel costs and higher expenses for maintenance, repairs and operations.

"Global demand remains intact and bookings for the fourth quarter are also at a high level compared to the previous year," said chair and chief executive Carsten Spohr.

"With all passenger airlines operating at a profit, Eurowings, Austrian Airlines and Brussels Airlines even generated record results in the third quarter. Lufthansa Technik and Lufthansa Cargo also remain on track."

The company said load factors booked for November and December are already well above levels seen last year, while demand remains particularly high in business and first class, as it reiterated its guidance for an operating profit of €1.4bn-1.8bn for the full year.

The stock was down 2.7% at €6.68 by 1204 in Frankfurt.