Lufthansa calms any profit expectations

Lufthansa forecasts big decline in yields this year
Despite lower fuel prices, Lufthansa forecasts profits for 2016 that are only slightly higher than last year, news agency Reuters reports. As it increases its Eurowings low-cost business, the airline group is warning of cut-price competition and falling fares.
Like IAG and Air France-KLM, Lufthansa is benefitting from low oil prices and strong demand. But budget rivals like Ryanair and easyJet have also benefitted and continue to challenge Eurowings.
Lufthansa forecasts a big decline in yields this year, due also to the expansion of Eurowings on long-haul routes.
After reporting adjusted earnings before interest and tax for 2015 of €1.82 billion, Lufthansa expects a slight rise profits for this year. The group is still struggling to reach agreement with staff on new pay and pension deals, and last year strikes cost the carrier €231 million in lost earnings.
Reuters

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