Lufthansa issues profit warning

admin
By admin June 12, 2014 14:09

Lufthansa issues profit warning

German flag carrier Lufthansa has issued a profit warning, blaming pressure on ticket prices in Europe and the US. The warning has caused a drop in airline stocks throughout Europe and the US.

Lufthansa stated that it expected to make an operating profit of €1bn this year, down from its previous forecast of between €1.3bn and €1.5bn.

An earnings target of €2.65bn in 2015 has also been dropped, despite the firm’s ongoing cost-cutting drive. The board said it has proposed a lower target of €2bn to new CEO Carsten Spohr, who took over in May.

Lufthansa CFO Simone Menne said that the firm would review its spending plans and “noticeably reduce” its flights over the coming winter to reduce excess capacity.

Lufthansa has also cited intense competition from fast-growing Middle-Eastern carriers, strike action by pilots and the devaluation of the Venezuelan bolivar as factors triggering the warning.

Shares in Lufthansa dropped 14% yesterday.

admin
By admin June 12, 2014 14:09
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Flufthansa-issues-profit-warning%2F"> registered </a> users can comment.