Lufthansa clouds
June 19, 2009
The Cologne-based airline Deutsche Lufthansa AG released a statement on Friday saying it must cut costs in order to maintain positive operating income for the fiscal year.
Due to an increased cost of doing business and falling passenger numbers and freight, the carrier announced that “a positive operating result requires additional cost savings.”
While fuel prices have increased by 50 percent in the second quarter of this year, according to Lufthansa, the airline has seen lower volumes and prices across all sectors during the same period.
Cost cutting measures, in addition to those already in place, will be undertaken to avoid sinking into the red.
"What the measures will look like is still unclear," a spokeswoman for Lufthansa said but there are currently no plans for lay-offs.
Citing a significant drop in demand, Lufthansa posted a net loss of 256 million euros ($358 million) in the first quarter of 2009, down from a net profit of 44 million euros in the same period of 2008.
sjt/Reuters/dpa
Editor: Susan Houlton