Lufthansa raises fuel cost estimate to EUR5.2bn
Lufthansa further increased its 2010 fuel cost estimate, adding that it now expects a fuel bill of EUR5.2 billion in 2010 (Dow Jones, 05-May-2010). The carrier had previously forecast EUR4.9 billion in fuel costs for 2010, an increase from EUR3.7 billion in 2009. The carrier added that the rise in jet fuel prices, combined with renewed industrial action by staff (which cost the carrier nearly EUR50 million) and repeated closures of airspace due to volcanic ash clouds, could jeopardise its forecast for improved operating earnings in 2010. However, the carrier has reiterated it expects 2010 operating earnings to be improved from the EUR130 million achieved in 2009. Newly integrated airlines, Austrian Airlines and bmi, accounted for a third of the carrier's 1Q2010 loss and are expected to also weigh on earnings for FY2010.