Over-ambitious Lufthansa curbs growth as profit miss hits stock

Lufthansa is paying the price of chasing market share in its own backyard as the cost of integrating jets from collapsed rival Air Berlin weighs on earnings. Lufthansa shares fell as much as 9.5% Tuesday, the biggest intraday drop in more than 2 years, after the carrier’s latest results missed analyst estimates, forcing it to trim expansion plans to help bolster margins. Lufthansa previously called the chance to snap up planes from Air Berlin the opportunity of a lifetime. While the move added passengers, the company has struggled to efficiently utilise the jets, racking up a bill from compensation for delays. “Clearly we’re unhappy, but we’re accepting the short-term costs that will translate into long-term benefits,” said CFO Ulrik Svensson. The executive said he’s confident that unit costs will still fall this year. <br/>