"Perspectives 2011" - Sustainability and Annual Report (pdf)

Introduction Company profile and strategyService portfolio Communication and social responsibilityOn the negative side, the events of the Arab Springimpacted substantially on traffic to and from thecountries affected, but not on overall traffic growth atMunich Airport. Flights to and from Egypt saw pas -senger numbers drop by one-fifth due to the country’spolitical upheavals, and traffic to and from Tunisia wasdown a quarter. However, these drops were morethan offset by gains on routes to alternative traveldestinations, with services to Turkey alone logging212,000 additional passengers – almost twice thenumber by which passengers on flights to and fromEgypt and Tunisia declined.On intercontinental routes, the passenger volumegrew by almost 7 percent. Routes to and from Africawere the only ones on which passenger numberswere down on the prior year, and this was due tofewer services being offered to two holiday destinations,Mauritius and the Cape Verde Islands. By con -trast, passenger numbers on routes to and from Asiaincreased sharply.On transatlantic routes, passenger trends differed,with marked gains on services to Canada and Brazilbut declines on flights to tourist destinations inMexico, Cuba and the Dominican Republic.A key reason for our rising numbers of passengerand aircraft movements are changes in fleet policyby air lines serving Munich, most notably DeutscheLuft hansa. Because Munich Airport has been a solidgrowth market in recent years, Lufthansa has boostedcapacity significantly here, mainly by operating jetswith higher seat capacities rather than by steppingup frequencies on its routes.Our earnings in 2011 reflect the traffic boom at MunichAirport during the course of the year.SalesGroup sales in fiscal 2011 totaled €1.150 billion (2010:€1.081 billion), rising 6.4 percent overall in the aviationand non-aviation sectors thanks to the growth in traf -fic and passenger numbers. The changes in Groupsales and earnings are reviewed below, in the sectiontitled “Group business activities.”ExpensesCosts of raw materials and supplies in fiscal 2011grew less rapidly, by 1.8 percent, or €5.292 million,to €294.813 million.Year on year, the rise in personnel expenses wasmarginal, just 0.4 percent or €1.113 million, to€308.124 million. This was the result of natural wastageand structural changes in the ground handlingsector.Significant other operating expense and interest accountedfor €292.620 million (2010: €350.544 million)or 27.9 percent (2010: 31.8 percent) of the Group’stotal pre-tax costs. This represents a 3.9 percentdecrease on the prior year and is due both to anincrease in other operating expense in 2010, from€98.228 million to €182.077 million, and to a dropin 2011 in the interest paid to shareholders, to€15.948 million from €151.982 million a year earlier.During 2010, all contractually owed interest fromprior years was paid to shareholders.Depreciation, amortization and impairmentsacross the Group totaled €154.398 million (2010:€155.584 million).116