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Lufthansa announces Q2 earnings that are higher than expected

Lufthansa reported Thursday better results for the second quarter than expected. Low oil prices and currency effect were key factors. The airline also confirmed its full year guidance.

Lufthansa's analyst poll revealed that the German airline reported an operating loss of 871 millions euros, compared to 805 million euro expected.

This is a 27% increase compared to the 686 million euro reported for the same quarter in last year.

The company said that the increased earnings were primarily due to the expansion of its flight program in the passenger business. It also attributed the improvements in earnings to the positive effects of its investment in Italy’s ITA Airways, and a doubled operating result in the logistics segment.

Lufthansa said that demand for flights in the United States was also strong, despite the weakening of the U.S. Dollar.

Major European airlines are watching for any possible drop in transatlantic travel, as Europeans have been reluctant to book trips this year.

Delta was among the U.S. carriers that pulled their forecasts for this spring due to a weakening of travel demand following tariffs announced by President Donald Trump.

European airlines have been more optimistic up to now.

(source: Reuters)