Lufthansa to restructure as profits tumble

Lufthansa CEO Carsten Spohr will unveil a new restructuring plan for the carrier after it issued a profit warning for its 2014 and 2015 financial years.


Lufthansa to restructure as profits tumble


Lufthansa CEO Carsten Spohr will unveil a new restructuring plan for the carrier after it issued a profit warning for its 2014 and 2015 financial years.

The German carrier shocked the trading world with an announcement stating its anticipated operating profit for 2014 would fall €300 million short of its projected earnings of €1.3 billion while 2015 would fare worse with €2 billion expected against a previously anticipated €2.65 billion.

“Given these economic developments the Executive Board no longer believes that the earnings target for 2015 of €2.65 billion set as part of the Score programme can be achieved. The company nonetheless intends to substantially increase its operating profit compared with the current year. The basis for this will be laid with the noticeable reduction of capacities during the winter timetable period,” the airline said.