Lufthansa points to ‘intensive’ competition for €336m loss in Q1

Lufthansa made an adjusted loss of E336m before interest and tax in the first three months of 2019, confirming its profit warning a fortnight ago. The carrier blamed “overcapacities, intensive competition and correspondingly high pricing pressure on short-haul routes”. Fares on its network carriers — Lufthansa, Swiss and Austrian — fell 5%, adjusted for constant currency. In the same quarter last year, it made an adjusted profit of E52m before interest and tax. The group had revenue of E7.9b for the quarter, up 3% on last year and also in line with its warning. The group’s fuel bill rose E202m as hedging failed to shave off much of the increase in the jet fuel price, as well as unfavourable foreign exchange movements. It said its fuel bill in 2019 would now increase by E600m, compared with previous guidance of E550m. Results for the low-cost Eurowings airline were also poor, with fares down 7% on the previous year, however the carrier did manage to cut unit costs excluding fuel at constant currency by 5.9%.<br/>