Lufthansa Q3 profits fall 4pc to US$1.2 billion though sales rise 2pc
LUFTHANSA, which includes Austrian Airlines, Brussels Airlines, Eurowings and Swiss International Air Lines, third quarter group net profit declined four per cent year on year to EUR1
LUFTHANSA, which includes Austrian Airlines, Brussels Airlines, Eurowings and Swiss International Air Lines, third quarter group net profit declined four per cent year on year to EUR1.1 billion (US$1.2 billion).
Year-to-date net profit was down 43 per cent to EUR1 billion, prompting the company to limit growth of the network airlines, namely Austrian Airlines, Brussels Airlines, Lufthansa and Swiss, while the long-haul turned short-haul low-cost carrier, Eurowings will reduce capacity in the 2019/2020 winter season.
'Lufthansa Group is responding to the continued pricing pressures in Europe, which are further intensified by a general slowdown in the global economy,' said the company statement.
Nevertheless, Eurowings is showing positive signs, according to the Lufthansa group. Q3 2019 earnings before taxes and interest (EBIT) are up by 39 per cent to EUR169 million.
Further changes are also coming to Austrian Airlines, Brussels Airlines and Lufthansa Cargo. The Austrian carrier will focus on strengthening positions in its hub in Vienna International Airport (VIEA), closing all decentralised bases.
Also, the airline will phase out De Havilland Canada Dash 8 Q400 turboprops, replacing them with the Airbus A320 family aircraft. As of November 7, Austrian Airlines has 16 Q400 aircraft in its fleet, planespotters.net data shows.