Lufthansa Group has cut its full-year profit guidance citing “price pressures” on its European operations brought on by “market-wide overcapacities” and the “aggressive” growth of low-cost rivals.
The airline said on Monday morning (17 June) it was revising the group’s financial outlook for the full year. Adjusted margin for earnings before tax and interest (ebit) was previously forecast between 6.5% to 8%; this has been reduced to 5.5% to 6.5%.
Projected pre-tax ebit now stands at €2 billion to €2.4 billion, as opposed to €2.4 billion to €3 billion. This also factors in a €550 million increase in fuel costs, despite declining oil prices.
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