FRANKFURT (Dow Jones)--Deutsche Lufthansa AG Thursday warned that difficult market conditions combined with crises in Japan, the Middle East and North Africa are weighing on the business development of its two newest additions to its stable of airlines.
Germany's flagship airline, however, reiterated it expects group 2011 operating profit and revenue to rise on the year as the recent "positive development of demand and sales" continues.
Lufthansa posted a 55% increase in second-quarter net profit to EUR301 million from EUR194 million a year ago.
Chief Financial Officer Stephan Gemkow said the March earthquake and nuclear disaster in Japan, alongside political upheaval in North Africa, burdened results by around EUR117 million in the first half. He said the overall impact could amount to around EUR200 million in 2011, although this estimate isn't "waterproof."
"The situation in Japan has relaxed somewhat but we're still seeing a general restraint for air traffic to Asia," Gemkow said, adding that there had been no improvement in the Middle East and Africa.
Austrian Airlines and British Midland Airways, or bmi, were worst-affected, Lufthansa said. It plans to step up cost cutting and restructuring at both units.
Read more: http://online.wsj.com
No comments:
Post a Comment