Price war impacted Lufthansa

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Cheap airlines in Europe largest airline in short-haul business to create. For 2019, the German Lufthansa has to evaporation, therefore your profit target.

The fierce price competition in the European air traffic crossed the profit plans of Lufthansa. Because of the “aggressive” business policy of so-called low-cost Airlines will be the operating profit for the group this year, only 2.0 to 2.4 billion euros, with the Dax-listed companies shortly before the Start into the new trading week in Frankfurt am Main. So far, the Lufthansa Management was assumed to be 2.4 to 3.0 billion euros.

The message was the Lufthansa share at the start of trading dramatically crash: The papers lost almost eleven percent and was heading for the biggest one-day loss in five years. The sell-off gripped the entire sector. Shares of Air France and British Airways-parent IAG lost up to four percent. The low cost carriers Ryanair, EasyJet and Wizz lost up to five percent.

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While the business on long-haul routes will continue to be well run, but is expected to miss the low-cost subsidiary Euro wings because of the tough competition in 2019, the income threshold available and operational in the red letter, announced that Lufthansa. Competitors are ready, significant losses, to expand its market share, the group as a whole.

Also in the cargo business it runs worse than thought: The division, Lufthansa Cargo has already taken three of the older cargo aircraft from the flight plan and expects this year with a stagnating turnover. Of the Proceeds, only three to five percent is expected to remain as the operating profit at the group, it said. That would be about half as much as in the past, we aimed for.

wa/jj (dpa, rtr)