Lufthansa issues profit warning
Lufthansa has followed the lead of Air France-KLM by issuing a profits warning.
The German carrier lowered its 2008 operating profit outlook due to higher fuel costs and an uncertain market amid the global economic slowdown and financial crisis.
The company said it now expects operating profit for the year to come in at 1.1 billion euros (£800 million).
The profit warning comes three weeks after Lufthansa for the first time conceded that the financial crisis and cooling global economy have led to a noticeable decline in bookings, particularly from business travellers.
Commerzbank analyst Frank Skopzik said: “We’ve expected a profit warning in our estimates but are surprised how weak third quarter figures came in.”
Lufthansa said net profit for the first nine months of the year fell more than 65 per cent.
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