German airline Deutsche Lufthansa reined in its full-year operating profit guidance today after a weaker second-quarter than analysts had expected.
Lufthansa now expects 2004 operating profit of €300 million, compared to a previous estimate of between €300 million and €400 million. The airline said it saw a clearly positive net result for the full year.
Operating profit in the three months to June 30th more than doubled to €149 million thanks to a recovery in the air travel market.
First-half net income was €39 million, up from a loss of €392 million in the first half of 2003. Its shares slipped 1.8 per cent in pre-market trading on Instinet.
"The underlying setting in the aviation sector remains difficult and the competitive situation fierce," said Lufthansa Chief Executive Wolfgang Mayrhuber in a statement today.
The airline has hedged 50 per cent of its 2005 fuel requirements.