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Lufthansa Warns European Terror Creating Turbulence

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Wednesday, August 3, 2016 - 02:00
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Lufthansa Warns European Terror Creating Turbulence

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German flag carrier Lufthansa warned on Tuesday that recent terror attacks in Europe were having a “tangible impact” on business, with second-quarter profits down 17%.

Net profits between April and June came in at €437 million ($488 million), the group said, slightly below analysts’ expectations, who had forecast a figure of €443 million.

“The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes,” said chief executive Carsten Spohr, France24 reported.

“The forward bookings, in particular for our long-haul services to Europe have declined significantly,” added the CEO, predicting a “difficult” second half of the year.

Lufthansa said it expected full-year earnings stripping out costs for the year to come in below the previous year’s. The weak profits came despite the lower oil price, which resulted in a fuel cost boon of €597 million.

Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered “a complete recovery as not likely anymore”.


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