Lufthansa earnings fall 27% as outlook deteriorates further

Germany's Lufthansa Group, Europe's largest airline group by revenue, reported a 27% drop in third quarter (three months to 30-Sep-2011) operating profit as "the macroeconomic environment darkened significantly" in the period. The group warned the economic gloom is showing no signs of abating and due to an ugly forward bookings profile, Lufthansa is again slashing future capacity plans.

The airline breathed a sigh of relief as the third quarter result pushes the airline back firmly into the black in the YTD period. Although the result "does not have us jumping for joy," CEO Christoph Franz said, Lufthansa is profitable while many "competitors are struggling to make figures that are not in the red".