Lufthansa cuts profit forecast
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Lufthansa has cut its profit forecast for the 2014 financial year, due to lower-than-expected revenues in both the passenger and cargo sectors.
The German carrier is now expecting to make an operating profit of approximately EUR1 billion (US$1.36bn), compared to its previous forecast of EUR1.3-1.5 billion.
“The revenue risks mentioned when we presented the quarterly figures in early May have unfortunately materialised,” said Simone Menne, Lufthansa’s chief officer for finances & aviation services.
The main dent in the company’s revenues is being experienced in the American and European markets, which Lufthansa said have suffered from “excess capacity”, leading to falling prices on these routes. This is the result of a major expansion of capacity by Gulf carriers, which according to Lufthansa, is a “major concern”.
“We will therefore noticeably reduce our capacities during the winter timetable period,” Ms Menne added.
Lufthansa generated operating profits of EUR1.04bn in 2013 – a result that marked a 62% jump compared to the previous year.
Comments are closed.