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Lufthansa looks to cut costs to protect profits as demand fluctuates
UNPRECEDENTED demand volatility in the airline industry has prompted Deutsche Lufthansa to push ahead with cost-cutting measures to maintain earnings.
"Market volatility has become huge," amid economic uncertainty, particularly over the knock-on effects of Brexit and terrorist attacks, chief executive officer Carsten Spohr told journalists in Frankfurt, Bloomberg reported.
"I haven't seen anything like this in my career." The carrier is transforming itself at "the highest possible speed to maintain earnings", he said.
Lufthansa is among European airlines that have scaled back flight plans following deadly terrorist attacks in Paris, Brussels and Istanbul over the past 18 months. The airline also lowered its operating profit forecast in July.
Lufthansa network airlines will grow more slowly than the industry's five per cent increase this year, Mr Spohr said.
The carrier is also struggling to wrap up a contract with pilots after reaching an agreement with flight attendants that it said will contribute to profit this year through reduced spending and lower pension contributions.
Mr Spohr said at the media briefing that he's "optimistic we can resume talks soon" with the pilots' union.
"Market volatility has become huge," amid economic uncertainty, particularly over the knock-on effects of Brexit and terrorist attacks, chief executive officer Carsten Spohr told journalists in Frankfurt, Bloomberg reported.
"I haven't seen anything like this in my career." The carrier is transforming itself at "the highest possible speed to maintain earnings", he said.
Lufthansa is among European airlines that have scaled back flight plans following deadly terrorist attacks in Paris, Brussels and Istanbul over the past 18 months. The airline also lowered its operating profit forecast in July.
Lufthansa network airlines will grow more slowly than the industry's five per cent increase this year, Mr Spohr said.
The carrier is also struggling to wrap up a contract with pilots after reaching an agreement with flight attendants that it said will contribute to profit this year through reduced spending and lower pension contributions.
Mr Spohr said at the media briefing that he's "optimistic we can resume talks soon" with the pilots' union.
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