Profit Warning

Terror Fears Hit Lufthansa Forecast

Lufthansa airplanes are parked on the tarmac during a strike by cabin crew union (UFO) at Frankfurt airport, Germany, November 13, 2015. REUTERS/Ralph Orlowski/File Photo
Bookings at Lufthansa are down in light of terror attacks in Europe, the airline warned Tuesday.
  • Why it matters

    Why it matters

    A drop in profits for the first half of the year show terrorism and other uncertainties have already affected Lufthansa’s bottom line.

  • Facts

    Facts

    • At the end of July Lufthansa said it expected this year’s adjusted operating profit to come in below the €1.8 billion reported for last year.
    • The airline on Tuesday reported a 17-percent drop in second-quarter profits to €437 million.
    • Analysts currently expect full-year profits of around €1.45 billion.
  • Audio

    Audio

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Carsten Spohr is having a hard time predicting the future. The Lufthansa chief executive on Tuesday was forced to admit that he really doesn’t know how profitable Germany’s flagship airline will be this year.

“The terror attacks in Europe, but also the increasing political and economic uncertainty, have left their mark on passenger travel,” Mr. Spohr told reporters.

It was an uncertain statement for uncertain times. In releasing the first-half results for Europe’s largest airline, Mr. Spohr warned that the entire airline industry faced a “difficult second half year,” characterized by an unusual amount of uncertainty.

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