Source: Reuters Author: Eva Kuehnen, Maria Sheahan 06/19/2009
Subject Concerned: Airlines Cargo
Deutsche Lufthansa warned investors on June 19 that it would not be able to post an operating profit as planned this year without further cost cuts given difficult markets.
"A positive operating result requires additional cost savings," Lufthansa said in a statement. "The goal is to avert an operating loss in the current financial year and to sustainably increase the earnings power in the following years."
Lufthansa had initially aimed for a "clear" operating profit this year.
On June 19, Lufthansa cited a 50 percent rise in the fuel price since the end of the first quarter along with falling revenue due to lower volumes and prices which continued across the sector in the second quarter.
"From a current perspective, a continuation of these developments would jeopardise the targeted operating profit," the airline said.
Airlines around the world are struggling to cope with a drop in demand for air travel amid the global economic crisis. The International Air Transport Association has forecast that the world's airlines are likely to lose US$9 billion this year.
Lufthansa's cargo division head, Carsten Spohr, earlier on June 19 said that there was still too much capacity in the air cargo market. Germany's flagship carrier has said it expected its cargo division to post an operating loss this year.