Lufthansa cuts earnings forecast

LUFTHANSA group has cut its 2014 earnings forecast due to “revenue risks” in its passenger and cargo business caused by strikes, currency impairments and “strong capacity growth by state-owned Gulf carriers”.
The German flag carrier’s executive board is now projecting an operating profit for the current financial year of approximately €1 billion, down from a previous forecast of between €1.3 to €1.5 billion
Lufthansa’s American and European businesses have suffered from increasing excess capacity, which leads to falling prices on these routes, it said.
Simone Menne, chief officer finances and aviation services at Deutsche Lufthansa, said: “We will therefore noticeably reduce our capacities during the winter timetable period.”
She explained that strong capacity growth by state-owned [Middle East] Gulf carriers was a “major concern”, adding: “They are advancing ever further into the European market, also by means of investments in European airlines.”
The Lufthansa pilots strike in early April had a negative results impact of €60 million. Additionally, impairments on receivables denominated in Venezuelan Bolivar have cost €60 million so far.

Share this story

Related Topics

Latest airlines news

Rosy outlook beckons for freighter conversions

By Greg Waldron, FlightGlobal

Freighter conversion suppliers expect a strong e-commerce market to support the switching of passenger jets to cargo use, although capacity…

Read More

Share this story

Magma benefits from demand for long-term freighter deals

By Damian Brett

Freighter operator Magma Aviation last year benefitted from demand for long-term contracts as companies looked to avoid space shortages by…

Read More

Share this story

Psi Air eyes Philippines-US flights

By Rebecca Jeffrey

Philippines-based cargo airline Psi Air has applied for a foreign air carrier permit and exemption from the US Department of…

Read More

Share this story