Lufthansa has seen net income in the first quarter become a loss of eight million euros ($9.2 million) while Lufthansa Cargo has struggled.
For the airline group, revenue was down 0.8 per cent to 6.9 billion euros and the loss of eight million euros compares to a profit of 425 million euros in 2015. The Logistics division, which includes Lufthansa Cargo, saw revenue fall by 21.8 per cent 480 million euros.
Though Lufthansa Cargo cut capacity in available cargo tonne kilometres by 1.6 per cent to 2.8 billion, volumes in revenue cargo tonne kilometres falling 4.8 per cent to 1.9 billion. Lufthansa Cargo’s load factor was down by 2.3 percentage points to 67.6 per cent. All regions of the world saw double digit revenue falls, with the Americas suffering the most, down 25.2 per cent to 193 million euros.
Lufthansa chief financial officer, Simone Menne says: “The intensity of the competition and the resulting pricing pressures will not ease – not least because of the low fuel costs. This is why it is important that we continue to work consistently on our cost positions.”
“We remain fully committed to our goal of reducing our unit costs this year net of fuel and currency impacts.”
The German airline group is predicting group revenue and adjusted earnings before interest and tax (EBIT) to be slightly above the 2015 result in 2016, except for Lufthansa Logistics, where revenue is expected to be slightly below and EBIT significantly lower.