Lufthansa logs decent profit, but huge challenges ahead | Business| Economy and finance news from a German perspective | DW | 02.08.2016
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Business

Lufthansa logs decent profit, but huge challenges ahead

Europe's biggest airline has booked solid quarterly results. But amid growing fears of terrorist attacks, more and more people are becoming reluctant to board a plane. This might drag down the industry.

Germany's national carrier reported positive figures for the first half of 2016, but braced for turbulence over the coming months.

While net profit almost halved compared with the same period last year, Lufthansa said this had mainly been down to the sale of a big stake in JetBlue that boosted earnings in early 2015.

But adjusted earnings before profits and tax - the airline's key figure which excludes such one-off gains - were up 13 percent from 468 to 529 million euros ($591 million).

This growth was mainly fueled by Lufthansa's passenger operations, while its cargo business struggled with yields dropping to levels last seen in the wake of the financial crisis.

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Rough patches ahead

Despite reassuring first-half year results, the carrier's outlook for the remaining months remains gloomy.

"The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes," said Lufthansa's CEO Carsten Spohr.

The group said they were predicting this year's final profits to be below last year's 1.8 billion euros, but stopped short of announcing concrete targets.

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Mixed year for Lufthansa

mrk/hg (AP, AFP, dpa)

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