Lufthansa 2015 Profit Up Thanks to Lower Fuel Costs
Lufthansa announced financial results for 2015.
The German flag carrier’s net profit rose to €1.7 billion ($1.93 billion) from €55 million in 2014, which had ben heavily impacted by several one-time items. The airline’s loss in the fourth quarter fell to €50 million from a €427 million loss a year earlier.
Lufthansa’s adjusted earnings before interest and taxes rose 55.2% to €1.82 billion. Sales were up 6.8% to €32.1 billion.
The airline’s increase in earnings is due to lower fuel costs and “the favorable developments in our passenger volumes and to our capacity discipline,” said airline CEO Carsten Spohr.
Looking ahead to 2016, the company expects a €1 billion drop in fuel costs, but Lufthansa anticipates only a slight increase in adjust earnings before interest and taxes. The company says that low fuel costs and an increase in competition are keeping ticket prices lower and some of its efforts to lower its costs are behind schedule.
Shares in the airline fell more than 6% in Frankfurt trading following the news.
(Photo: Accura Media Group)
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