Lufthansa sees harder 2018 as rivals rush to fill Air Berlin gap

Lufthansa cashed in on the collapse of rival Air Berlin last year, but warned that 2018 will be a whole lot tougher as foreign competitors target the German market. Operating profit that jumped 70% in 2017 is set to slide, snapping a three-year run of record annual earnings, Lufthansa said Thursday. The company will also trim its capacity plans as a splurge on seating among European carriers risks flooding the market.Lufthansa is adopting a more cautious approach after EasyJet and Ryanair used the failure of Air Berlin to jump-start their operations in Germany. Air Berlin’s collapse was largely responsible for Lufthansa’s fastest revenue growth in seven years in 2017 as a lack of flights bolstered fares and it secured grounded jets to add flights. It also bought the whole of Brussels Airlines. “Competition is becoming more intense,” Lufthansa said. Though a number of carriers have folded, there has been “an even greater number of entries,” and the company’s business will therefore experience “significant fluctuations” in the year ahead. Lufthansa plans to increase capacity 9.5% in 2017, less than the 12% previously planned, with much of the gain stemming for a full year of operations with ex-Air Berlin planes and ownership of Brussels Air. <br/>