Lufthansa Systems posts record revenue in 2006

Lufthansa Systems’ revenue rose by 2.7 percent to reach a new high of EUR 652 million in 2006.

Published: 13 Mar 2007

Lufthansa Systems’ revenue rose by 2.7 percent to reach a new high of EUR 652 million in 2006.

According to the company, among the highlights was the proportion of revenue from the 180 customers outside the Lufthansa Group, which also reached a record level of 41.6 percent.

“The operating result was EUR 49 million, 22.2 percent lower than the previous year. This was due to ongoing price pressure, considerable preliminary costs for new outsourcing contracts, the strengthening of global service and of sales in Asia and America, and the development of new products. With the development of its new FACE Passenger Management System, Lufthansa Systems took the innovative lead in the market for next-generation platforms. 2008 will see the first productive use of FACE by an airline,” stated the company.

Wolfgang F. W. Gohde, chief executive officer, Lufthansa Systems AG said, “We expect the demand for high-quality IT services to remain high in the airline industry. Airlines can improve their competitive position in the long term by investing in the replacement of outdated IT systems. Since we are the only provider to cover an airline’s entire value chain, we have a strong position here.”

Gohde said, “Our extensive experience in the operation of aviation systems – which demand extremely high levels of security and availability – makes us an attractive partner to many companies in other sectors as well.”

In order to continually improve its own cost structure, Lufthansa Systems intends to expand its foreign production.

“This will bring us closer to our customers while improving our cost structure,” said Gohde.

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