Lufthansa lowers profit forecast

June 12, 2014 12:43 am

Germany carrier, Lufthansa has said it would not reach its profit targets for the next two years, as competition suppresses prices on its main European and US routes and as it struggles to make up for the effect of pilot strikes, Reuters has reported. Europe’s largest airline by revenue said it now expects 2014 operating profit of €1bn ($1.4bn), down from a previous forecast of €1.3-€1.5bn. It also reduced its 2015 earnings target to €2bn from €2.65bn. Chief financial officer, Simone Menne said prices on European and US routes were under pressure due to more seats being offered by rivals, such as those from the Gulf region. Lufthansa has long been a critic of airlines such as Emirates, Qatar Airways and Etihad, which it says enjoy competitive advantages because they are state-owned.