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Lufthansa lowers profits expectations for 2015

Lufthansa lowered its profit forecast for 2015 for the second time this year due to a weakening global economy.


The airline, Europe’s largest by revenue, said it still expected 2015’s operating profit to be “significantly above” the €1 billion (£78 million) expected for 2014, without specifying further.


The German group had previously forecast operating profit of €2 billion for 2015.


“This is mainly due to a general downturn in the forecasts for global economic growth compared to earlier in the year and as a result of this lower projected revenue growth,” Lufthansa said.


“The results will also be depressed by a sharp increase in pension costs due to the much lower discount rate. Due to the current strong volatility, especially in the oil prices and in the euro/dollar exchange rate a more precise forecast will only be issued next year.”


The forecast for 2014 remains the same and includes costs from strikes of around €170 million so far this year.


The airline reported third quarter operating profit of €735 million – up €145 million year on year, on sales of €8.46 billion.


Chairman and chief executive, Carsten Spohr, said: “We are currently working flat out to implement our work program with its seven strategic action areas, to ensure that we remain competitive in the longer term.


“Quality, efficiency and innovation are our prime focuses here. We’re making huge investments in quality and service for our customers; and we’re adopting new structures and innovative business models to tap into new growth opportunities and new customer groups.


“We’re also working further on our existing business areas, continually raising their efficiency.


“Lufthansa has shown time and again in the past that it can respond flexibly to the markets and their dynamic evolution and emerge all the stronger from the challenges of doing so; and I’m convinced that we’ll bring this strategy, too, to a successful conclusion.”

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