Lufthansa attempts to reassure investors after recent terror attacks

Lufthansa Tuesday tried to reassure investors that it still expected to pay a dividend for 2016, two weeks after warning that terrorist attacks had led to a drop in demand that prompted the airline to cut its full-year outlook. “Based on current calculations, we’re capable of paying a dividend,” CFO Simone Menne said. “The technical conditions are met.” The airline’s net profit for the quarter ended June 30 fell to E437m from E529m a year earlier. Despite higher passenger volumes, traffic revenue fell 5.4% due to strong pricing pressure in both the airline and cargo businesses. Adjusted earnings before interest and taxes, a key earnings figure, fell to E582m from E635m. Lufthansa said its passenger airline unit anticipated “very weak trends” in Q3 in particular. Unit revenues excluding currency effects are expected to fall between 8% and 9% in H2. Lufthansa didn’t provide detailed 2016 guidance but Menne said analyst expectations for an adjusted EBIT of around E1.5b were “certainly not badly calculated.”<br/>