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Lufthansa: first Q1 profit since 2008

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But group sticks to cautious message on outlook
Lufthansa moved to a first-quarter operating profit this year, in what could be seen as a further sign headwinds are easing for Europe’s airlines from falling ticket prices.
In its first operating profit in the typically weak winter quarter since 2008, the airline group posted €25 million profit before interest and taxes for the January-March period – a positive swing from the €53 million loss the year before. Sales rose 11% to €7.69 billion.
It had already said ticket pricing was improving following a long period of drops in fares. However, it was the group’s maintenance and cargo units that delivered the strongest results.
CFO Ulrik Svensson cautioned that there was not yet “sufficient visibility on the bookings in the important third quarter” for an adjustment.
There was a net loss for the quarter, of €68 million, compared to €8 million a year ago, due to issues such as currency hedges. For now, the group is sticking to its full-year guidance, which is slightly below that of last year.
MarketWatch

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