Lufthansa cuts profit forecast after bookings slump

Lufthansa cuts profit forecast after bookings slump

Lufthansa cut its full-year profits forecast after revealing a “significant decline” in advance bookings.

Long haul routes to Europe have been particularly affected due to repeated terrorist attacks and to greater political and economic uncertainty, the German airline group disclosed.

The change to its original profit forecast in March means that “a complete recovery as not likely any more,” Lufthansa warned.

The airline’s executive board lowered its full year forecast for adjusted earnings [EBIT] from “slightly above previous year” to “below previous year”, despite an earnings performance above previous year in the first six months.

Lufthansa added that revenues would be significantly weaker in the third quarter of the year and planned capacity growth has been cut from 6% to 5.4% for the full year.

Revenues for the first half of the year came in at €15 billion against €15.4 billion for the same period in 2015, although adjusted earnings rose to €529 million from €468 million.

British Airways owner International Airlines Group and EasyJet have also issued profits warnings in recent weeks.


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