Restructuring continues ahead of leadership handover
The first signs of Lufthansa‘s SCORE restructuring program became apparent last year. As the German giant prepares for a leadership change it is about halfway through its restructuring, but CAPA expects higher operating results in 2014 and 2015.
Small but radical changes to the restructuring have been revealed shortly before the handover – firstly, as previously reported, to separately incorporate its frequent flyer program, and secondly to bring its aircraft depreciation policy more in line with market practice.
The group’s operating result target for 2015 is €1.3 billion to €1.5 billion, or €1.68 billion to €1.88 billion excluding restructuring and project costs. CAPA says that this is reachable – as long as uncertainties such as demand weakness, fuel price increases and geopolitical events do not add to existing headwinds.
[photo courtesy Lufthansa]