Aviation: Kerosene costs and strikes cause Lufthansa's profit to plummet
Europe's largest airline group is struggling in the second quarter. However, it's not just the situation in the Middle East and high kerosene prices that are weighing on Lufthansa.
Frankfurt - Higher kerosene prices and a strike in April have significantly burdened Lufthansa in the second quarter, the company announced on Tuesday. The adjusted operating profit (Ebit) dropped by 56 percent to 383 million euros compared to the same period last year. The group's earnings decreased by 88 percent to 123 million euros.
Given the uncertainty regarding future oil prices and the trend of booking very short-term, the MDax company does not rule out a decline in overall operating profit for the year. As a result, Lufthansa revised its forecast slightly to a range of 1.7 to 2.2 billion euros, up from the previous year's 2.0 billion euros. So far, the airline had aimed for the upper end.
The higher kerosene prices added an additional 750 million euros in costs. Lufthansa CEO Carsten Spohr commented, "Despite our further improved utilization and significantly increased average revenues, the significantly increased fuel costs could not be fully compensated for." Six days of cockpit staff strikes in April also added an extra 150 million euros to the result.
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