Lufthansa cuts profit forecast after bookings decline

Germany's biggest airline cites terror attacks and political and economic uncertainty

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Sharecast News | 21 Jul, 2016

Updated : 10:52

Lufthansa airlines has blamed European terrorist attacks and an uncertain political and economic environment for cutting its profit forecast for this year.

It cut its full-year profit forecast for 2016 from "slightly above previous year" to "below previous year".

Other airlines such as British Airways and Easyjet have also cut their prospects following a fall in bookings.

The group also released preliminary results for the first half of 2016, saying sales fell to 15bn euros, down from 15.4bn in the same period last year. First-half adjusted EBIT rose to 529mn euros, up from 468 mn last year.

A previous target of 6% for increased flying also fell to around 5.4% for the year.

In its statement, Lufthansa said advance bookings, in particular on long-haul routes to Europe had "declined significantly", since it made its original profit forecast in March.

As well as various terror attacks in France, Belgium and Turkey in the past year, Europe has faced political and economic turmoil following the proposed departure of Britain from the European Union last month.

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