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Lufthansa confirms its full-year profit guidance after beating Q2 forecasts

Lufthansa announced better-than expected second-quarter results Thursday, thanks to low oil prices, currency effects and other factors. It also confirmed its full-year forecast.

Lufthansa's analyst poll revealed that the German airline group had reported an operating income of 871 millions euros ($995.3) compared to a forecasted 805 million euro.

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

The company said that the increased earnings were mainly a result of its expanded passenger flight program, positive effects from the investment it made in Italy's ITA Airways, and a doubled operating result in the logistics segment.

In a press release, Carsten Spohr, Chief Executive Officer of the company said: "Despite the fact that the second quarter saw a return to geopolitical crisis and economic uncertainty, we confirm today our positive outlook for this year."

Lufthansa struggled to cope with the spiraling costs of labour and a slowdown in traffic from Asia. It issued two profit warnings at the end of last year.

Spohr stated that Lufthansa’s core brand has made significant improvements in punctuality, operational stability and reliability despite ongoing restructuring efforts.

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 closely monitoring the possible drop in transatlantic travel, as Europeans have been reluctant to book trips this year.

After the announcement of tariffs by President Donald Trump, a number of U.S. carriers, including Delta Airlines, lowered their forecasts for this spring due to a weakening of travel demand.

Virgin Atlantic warned earlier this year of a slowdown in transatlantic bookings.

(source: Reuters)