They're facing competition on several fronts - from low-cost carriers and Middle Eastern airlines. But Lufthansa's new CEO Carsten Spohr has a plan for the German flag carrier. He needs to win over travellers - and investors. A profit warning last month wiped $2 billion off Lufthansa's market value in a single day. Lufthansa predicts lower than expected profit in 2014 and 2015. Short-term measures to make up for that include offering fewer seats in winter than originally planned.
It's a difficult time for Europe, and airlines are at the frontline. German flag-carrier Lufthansa has seen second quarter profits drop 27%. Even though it's shedding 3,500 jobs, staff costs have grown -- and continental demand is weak. But Europe's biggest airline by sales says it's on target. Lufthansa CFO Simone Menne.
German airline Lufthansa is facing more strike woes after pilots voted to bolster their demands for better pay and working conditions with industrial action. More than 90 percent of the German flagship carrier's pilots voted in favor of going on strike, union Vereinigung Cockpit, which represents about 5,400 Lufthansa pilots, said on Friday.
An airline that's effectively grounded. Lufthansa's cancelled almost 4000 flights until Friday, due to a three-day strike by pilots over early retirement It's one of the biggest walkouts to hit Germany's flag carrier. And it's the third strike to affect Frankfurt airport in six weeks. But some passengers still had sympathy for the pilots.
Lufthansa's reaping the rewards of its restructuring. It's reported better than expected operating profit, and a dividend payout is winging its way back to investors. This turnaround has given executives at Germany's largest airline plenty to smile about. Lufthansa says the improvement is down to its SCORE programme. Christoph Franz is Lufthansa's CEO.
German airline Lufthansa dismissed the risk of it coming under undue foreign influence despite the percentage of non-Germans owning its shares rising to more than 40 percent, a move that could trigger a defensive buyback of its shares. Germany's biggest airline said the total shareholding of non-German investors had reached 40.69 percent, but it was not planning any buyback for the moment.
Southwest Airlines will announce its first quarter results Thursday, April 23. The low cost carrier is coming off an impressive 2013 in which its revenues rose by 3% annually to a record $17.7 billion, and its profits nearly doubled to $754 million, on gains from capacity expansion. In the first quarter however Southwest’s results likely won't benefit from capacity expansion, as the carrier lowered its flying capacity by around 1% annually.
$19 billion dollars is today's daily digit - the amount Lufthansa is spending on new jets. It's ordered 59 wide-body jets from Boeing and Airbus to replace its ageing fleet. The airline is hoping a more fuel efficient fleet will mean it's more competitive. It's hoping to win customers from fast growing Middle East and low-cost rivals, particularly on lucrative routes between Europe and Asia.
The German flagship airline Lufthansa warned Monday that a strike planned by its largest pilots’ union this week would probably be one of the most disruptive in its history, threatening to affect more than 425,000 passengers across its global network.Last-ditch negotiations over the weekend between the airline and leaders of the union representing the majority of Lufthansa’s 5,500 pilots, Vereinigung Cockpit, failed to resolve a protracted dispute over changes in pay and retirement benefits.
The stock market fell back from record levels Wednesday, because of a weaker forecast for global growth and concerns about airline profits. Delta Air Lines and other carriers fell, after Germany's Lufthansa warned of smaller profits. The World Bank said late Tuesday that it expects the world economy to grow 2.8 percent this year, instead of the 3.2 percent it predicted in January. The Standard & Poor's 500 index fell 6.90 points, or 0.4 percent, to 1,943.89.
Global indices were mixed on Thursday as Western leaders continued efforts to stave off a weekend referendum in the Ukrainian peninsula of Crimea, where the majority ethnic Russian population is alarmed by the ouster of Ukraine¿s pro-Russian government. WM Morrison Supermarkets¿ restructuring plans spark food-retail mayhem and in Germany corporate stalwarts Lufthansa and Volkswagen both rise on earnings reports. Meanwhile, New Zealand becomes the first developed economy to raise rates.