Europe's struggling airline industry received a shot in the arm yesterday when German carrier Lufthansa raised its profits forecast for the year and ordered 10 new Airbus jets
Published:
1 August 2002 y., Thursday
Hammered by the slump in demand since last September's terrorist attacks on the US, European airlines have savaged costs, including thousands of jobs and planned orders, to restore profitability.
Lufthansa's forecast that its operating profits this year would be €500m (£314m) - compared with the €400m it predicted at its June annual meeting - propelled British Airways' shares skywards. They closed up 11p, or 7.4%, at 160p - the third highest rise in the FTSE 100 on the day.
The boost to BA's stock came ahead of tomorrow's first-quarter figures, which are expected to show pre-tax profits of around £80m - compared with the £200m pre-tax losses for the whole of 2001 and £50m earnings in the first quarter a year ago.
The airline also announced changes to its winter schedule which increase services to lucrative destinations such as New York and switch more routes from Gatwick to Heathrow in order to regain profitability. BA is increasing daily sub-sonic flights from Heathrow to New York from six to seven and weekly flights to Cape Town from seven to 10 among the changes, which will see capacity static compared with 2001.
Lufthansa said it would buy 10 Airbus A330-300s for delivery in 2004, prompting Airbus to claim it had so far won 76% of the medium to long range market so far this year.
Šaltinis:
guardian.co.uk
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
When you fill up your car with petrol you often find that your hand will reek of petrol unless you have worn gloves.
more »
The EU is going through its worst recession since WWII. Inflation has slowed, but employment and public finances are hard hit. The situation should stabilise in 2010.
more »
In the current economic environment, banks should carefully analyze the current and future total cost of ownership of their technology assets, and evaluate the outsourcing alternative.
more »
Commission proposes first EU law on hedge funds and issues guidelines on bank pay practices.
more »
On 30 April, Lithuania’s Minister of Foreign Affairs Vygaudas Ušackas took part in the round table discussion “The European Union’s External Trade Policy and Lithuania’s Positions: Threats and Possibilities for the Lithuanian Industry”.
more »
Since 28 April this year, the clients of AB Bank SNORAS will be able to process their financial matters in a clearer and more user-friendly environment of “Internet Bank+” system.
more »
2009 ageing report: Europe tackling the challenge of an ageing population but the recession threatens a setback.
more »
More choice, investment and security of supply lie at the heart of the 3rd energy package.
more »
Swine flu, a new strain of influenza, has so far left more than a hundred dead. But in one sector, the illness could have huge benefits.
more »
Central European bargain hunters are crossing borders for the best buys. Slovakian shoppers in Hungary are making the most of their new eurozone membership.
more »