Lufthansa posts drop in earnings on rising fuel costs, price wars

Adjusted earnings at the German carrier fell to €754m, compared to €1 bn a year earlier

Fuel costs were €255 million higher than in the previous year
Fuel costs were €255 million higher than in the previous year

German airline Lufthansa on Tuesday posted a decline in second-quarter earnings, hurt by price competition on short-haul routes in Germany and Austria as well as rising fuel costs.

The company said in a statement that adjusted earnings before interest and tax (ebit) fell to €754 million, compared to €1 billion a year earlier.

Fuel costs were €255 million higher than in the previous year, it said.

Lufthansa said it expected the European market to remain challenging until at least the end of this year.

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The company maintained its guidance for 2019, having in June cut its full-year profit forecast due to lower prices and higher fuel costs compounding the effect of losses at its budget subsidiary Eurowings.

- Reuters