Lufthansa Plunges Most in Three Years as Low Cost Fare War Bites
- Airline to continue to defend market share against challengers
- Plans new Eurowings savings after warning revenue seen down 2Q
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Deutsche Lufthansa AG shares slumped the most in three years after the company said it fears a European fare war will squeeze profits at least for the rest of the year.
A Europe-wide fight for market share forced Lufthansa to lower profit expectations for 2019, the German carrier said late Sunday. Falling revenues at its low cost Eurowings subsidiary were chiefly to blame, the airline said, adding that the market will remain "challenging" for at least the rest of the year due to the seating glut. Lufthansa said it expects an adjusted margin for earnings before interest and tax of 5.5% to 6.5% for the year, down from previous guidance of between 6.5% and 8%.