Lufthansa “must continue with cost cuts”

Profit at German brands tumbles 11% to €252mn in 2014
Despite the threat of further strikes by unhappy pilots, Lufthansa says it must press on with its cost-cutting to fight tough competition, after posting a fall in profits for 2014.
Profits at its core Lufthansa and Germanwings brands fell by almost 11% to €252 million in 2014, as it battles low-cost carriers on routes in Europe and rivals such as Emirates and Turkish Airlines on long-haul routes. But pilots are resisting its efforts to change costly wage agreements and expand low-cost operations.
Falling ticket prices and cost inflation have eaten away almost all of the €2.5 billion of profit improvement in the SCORE restructuring program between 2012 and 2014.
“We are very clear that we need further measures,” Simone Menne, Lufthansa’s chief financial officer, told journalists after the annual results were reported.
Reuters


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