Lufthansa late Wednesday raised its full-year earnings forecast, backtracking partially on a profit warning issued only 3 months ago. Adjusted earnings before interest and taxes this year are expected to be roughly on part with last year’s E1.8b (US$2b) level, the airline said. Lufthansa credited better-than-expected short-term business travel bookings in September. The reversal punctuates the high level of volatility European airlines are trying to manage. The revised outlook remains below the projection Lufthansa had given earlier in the year, when it promised investors a slight improvement in earnings this year. But in July, after terrorist attacks in Europe spooked travellers, Lufthansa warned profit could fall below 2015’s level. Lufthansa said measures it took to reduce capacity as well as other adjustments have been successful. <br/>
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Aircraft leasing company Avolon is suing Avianca Brasil and its parent company for an alleged default on a lease for an Airbus jetliner, leaving more than US$4m in unpaid rent, US court documents show. Avolon is also suing both the airline and its parent, Synergy Aerospace Corp, for breach of contract over the 2-year-old lease for an A330 jet and is seeking $5m in damages. A spokesman for Avianca Brasil said the company was not aware of any court case and would not comment on confidential contracts. The lawsuit comes as the airline considers options for a possible international partner to help it to weather Brazil's worst recession in decades. Avolon is owned by China's HNA Group, which has expressed interest in acquiring both Avianca Brasil and Panama-based sister airline Avianca Holdings. <br/>
United said Wednesday that Kate Gebo has been promoted to a newly-created position as senior VP of customer service delivery. United said Gebo and a team working with her will be charged with improving the overall United travel experience — a top priority for Oscar Munoz since he was named CE in Sept, 2015. In her new position Gebo will oversee all aspects of United's customer-facing experience, ranging from food service, airport operations, airport lounges and inflight services. Prior to being named to the new position, Gebo for the past year had served as VP in the office of the CE, functioning essentially as Munoz's chief of staff and helping him chart strategy for United's entire executive team. <br/>