Lufthansa is adjusting its growth objectives downwards. The German aviation giant is therefore responding to the lower performance last year. Fuel costs and lower ticket prices, among other things, prevented Lufthansa.
Lufthansa is now aiming for a capacity expansion of 1.9 percent this summer, where it previously planned an increase of 3.8 percent. With the adjustment, the aviation company hopes to support the ticket prices. It also wants to deal with the problem of limited capacity for extra flights at airports. All this should benefit the profitability of the group.
Lufthansa closed the past year with an operating profit of 2.8 billion euros. That meant a decrease of 7 percent on an annual basis. In addition to fuel and ticket issues, the company also struggled with the difficult integration of the acquired parts of Air Berlin. The company also says to look at further acquisitions.
For this year, Lufthansa is counting on a gross profit margin of 6.5 to 8 percent. With this, the group sent a signal that profitability might come under further pressure, given the profit margin of 7.9 percent last year.
The fuel costs are expected to be 650 million euros higher for Lufthansa this year. The company placed large orders earlier this week with aircraft makers Boeing and Airbus. By flying with more efficient aircraft, Lufthansa wants to reduce costs. The German group wants to replace older four-engine aircraft in particular.