Business

Lufthansa warns European terror creating turbulence

FRANKFURT, GERMANY: 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 per cent.

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.

Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered “a complete recovery as not likely anymore.”

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