Lufthansa says will meet profit target despite fuel costs

FRANKFURT - The leading German airline Lufthansa said Wednesday that it expected to meet its operating profit target this year despite rising fuel prices.

By (AFP)

Published: Wed 25 Jun 2008, 3:09 PM

Last updated: Sun 5 Apr 2015, 1:13 PM

Lufthansa board ‘confirms its outlook that the group's operating result for the full year 2008 will follow up on the previous year's record level,’ of 1.38 billion euros (2.1 billion dollars), it said ahead of a meeting with analysts and investors.

‘The current environment, particularly the high kerosene prices, does however represent a considerable challenge for the airline industry,’ it added in a statement.

Lufthansa estimated that fuel expenses for the full year would come to around 5.6 billion euros, but planned to offset that through ‘efficiency gains, cost savings as part of a package of measures which has already been initiated and fuel surcharges.’

‘Lufthansa remains confident that the demand for mobility will continue to increase and that despite fluctuations air traffic will carry on growing,’ the statement said.

The news boosted shares in Lufthansa, with early trading showing a gain of 1.18 percent to 14.62 euros in Frankfurt, while the Dax index of German blue-chips was up by 0.50 percent overall.

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