Lufthansa reins in profit expectations
Lufthansa forecast only slightly higher profits for 2016 as it reported adjusted earnings for 2015 up 55%. The forecast came despite lower fuel prices, with a warning of cut-price competition and falling average fares as the airline group ramps up its Eurowings budget business. Lufthansa reported 2015 adjusted earnings before interest and tax of E1.8b, up 55% from the previous year. Total revenue for the year was E32.1b, up 6.8% from 2014. Like rivals Air France-KLM and IAG, Lufthansa benefitted from low oil prices and strong travel demand in 2015, enabling it to restore dividend payments to shareholders. Lufthansa forecast a significant decline this year in yields due also to the expansion of Eurowings on long-haul routes. CFO Simone Menne said she could not see yields in Europe improving any time soon. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2016-03-18/star/lufthansa-reins-in-profit-expectations
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Lufthansa reins in profit expectations
Lufthansa forecast only slightly higher profits for 2016 as it reported adjusted earnings for 2015 up 55%. The forecast came despite lower fuel prices, with a warning of cut-price competition and falling average fares as the airline group ramps up its Eurowings budget business. Lufthansa reported 2015 adjusted earnings before interest and tax of E1.8b, up 55% from the previous year. Total revenue for the year was E32.1b, up 6.8% from 2014. Like rivals Air France-KLM and IAG, Lufthansa benefitted from low oil prices and strong travel demand in 2015, enabling it to restore dividend payments to shareholders. Lufthansa forecast a significant decline this year in yields due also to the expansion of Eurowings on long-haul routes. CFO Simone Menne said she could not see yields in Europe improving any time soon. <br/>
