Lufthansa Warns European Terror Creating Turbulence

Lufthansa warns European terror creating turbulence

FRANKFURT,(Pakistan Point News - 2nd Augst,2016) - German flag carrier Lufthansa warned Tuesday that recent terror attacks in Europe were having a "tangible impact" on business, with second-quarter profits down 17 percent. Net profits between April and June came in at 437 million Euros ($488 million), the group said, slightly below analysts' expectations, who had forecast a figure of 443 million euros. "The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes," said chief executive Carsten Spohr.

"The forward bookings, in particular for our long-haul services to Europe have declined significantly," added the CEO, predicting a "difficult" second half of the year. Lufthansa said it expected full-year earnings stripping out costs for the year to come in below the previous year's. The weak profits came despite the lower oil price, which resulted in a fuel cost boon of 597 million euros.