Rivals benefit from Lufthansa's lift

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.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Parex banka to expand relationship with American Express

Nils Melngailis, the Chairman of Parex banka, and Alex M Furber, American Express Vice President in Central and Eastern Europe, agreed to explore further options for co-operation. more »

Taiwan in 2.5bn dollar spree

Every one of the Taiwan's 23 million population has been given a voucher worth the equivalent of just over 100 U.S.dollars. more »

EU economy hit hard by global downturn

Commission cuts economic growth forecast as scale of financial crisis and ensuing global downturn become apparent. more »

After solid first quarter: Wincor Nixdorf reaffirms outlook, but attunes to economic crisis

Wincor Nixdorf AG completed the first quarter of the current fiscal year with 7 percent growth in net sales and an 8 percent increase in operating profit (EBITA). more »

Messy bedroom marketing

New homes go up in the UK's eastern county of Norfolk. There is also the unusual take on selling new homes. more »

Motorola Provides Preliminary Fourth-Quarter 2008 Results

Announces approximately 4,000 additional workforce reductions, primarily in the Mobile Devices business. Total cost savings from recent actions now expected to be approximately $1.5 billion in 2009. more »

MasterCard makes global, domestic organizational changes

MasterCard announces organizational changes. more »

Eurobarometer poll shows economic fears ahead of June European elections

Economic volatility , rising prices and a general pessimism about what the future holds were all opinions voiced in a recent “Eurobarometer” European survey. more »

Banking sales improve at Wincor Nixdorf, despite global economic downturn

Wincor Nixdorf AG says it exceeded its profit goals for fiscal year 2007/2008, which ended Sept. 30, despite a battered global economy and a slight drop in retail sales. more »

Aussie shoppers forget crisis

Across the country Australians are expected to spend over 10 billion U.S. dollars in post-Christmas sales. more »