World events cost Lufthansa €40 million in Q1

Global airline installs lighter seats and continues cost cutting

Events around the world have caused disruption for many airlines, bringing down their financial results. One of Europe’s airlines badly hit is Lufthansa, which says that the crisis in Japan and the Arab uprisings cost it €40 million in the first quarter. However, Europe’s biggest carrier is continuing with a cost-cutting program and fuel price hedging, and says that demand for air travel is strong. It is also trying to reduce the weight of its aircraft by installing lighter seats.
“The current challenges disrupt the course of business, but do not imperil the fundamental development of the company,” Lufthansa states in its quarterly financial report. The airline reported an operating loss of €227 million for Q1, which compares to a €330 million loss for Q1 2010. It is choosing not to give an estimate for revenue and operating profit for 2011.
Reuters