Lufthansa woes

In this part of the world Qantas is in financial trouble and Air New Zealand has reduced its profit and shed jobs.


The last major story on this was the myopic Qantas' losses could be Air New Zealand's gain


Lufthansa warns on deteriorating profits

Financial Times,

15 March, 2012

Lufthansa warned on Thursday that its earnings for 2012 would fall compared with last year, as it reported a €13m net loss for 2011.

Europe’s largest flag carrier by revenue expects to record an operating profit in the “mid three-figure million euro range” in 2012 compared with €820m in 2011. The group’s shares had fallen more than 2 per cent in afternoon trading to €10.28.

European flag carriers have seen their results suffer, partly because of the eurozone crisis and high fuel prices. Last week Air France-KLM reported a worse than expected net loss of €809m for 2011.

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India: Airlines need to hike fares by 15% to stay afloat: Boeing

Zeebiz.com,

14 March, 2012

Hyderabad: To cope up with rising fuel prices and falling yields, passenger fares need to be hiked by around 15 percent, Boeing India President Dinesh A Keskar said Wednesday.

"For this market to continue to do better, the fares must be raised and they must be raised to the tune of around 15 percent," Keskar said in a press conference on the sidelines of the third edition of India Aviation 2012.

"...If we don't do that (hike airfares)...we will continue to have this massive losses that are being faced by the carriers. And at some time, we will have difficulty in sustaining the health of the industry," he added.

Though a price hike may lead to fewer numbers of passengers, it will help regain the health of the industry, he added.

The global aviation industry's profit forecast has been steadily coming down and fuel price is one element that was affecting everybody, he said. "It (rising fuel prices) really

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