Lufthansa finance director Stephan Gemkow stated flight cancellations due to the 11-Mar-2011 Japan earthquake, tsunami and subsequent nuclear plant crisis and North Africa's political turmoil have cost the carrier "low three-digit million euro range at the pretax level" (Frankfurter Allgemeine/Reuters, 17-Jul-2011). He continued: "We can no longer recover that in the course of the year". The carrier expects to post a profit in 2Q2011, with Mr Gemkow stating the carrier is "satisfied with our outlook for 2011". "We continue to expect that our earnings and sales would be better than 2010. But developing the fantasy these could climb even further has now been significantly curtailed," he added. He also stated the carrier is taking measures to make regional operations overall profitable from 2013.
Lufthansa feels impact of Japan and North Africa crisis
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Striving for labour productivity improvements in its mainline operations, while also attempting to minimise industrial unrest; expanding its Eurowings low cost brand through organic growth, while also integrating the acquisition of Brussels Airlines and the wet lease of aircraft from airberlin; facing the growing threat of Ryanair's entry into its biggest hub at Frankfurt, while seeking to maintain a good relationship with the airport's owner Fraport; keeping positive momentum in its financial performance after earning more than its cost of capital in 2014-2016, while the global cycle may have reached a peak.
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