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Why Lufthansa could fly high
Air France-KLM, says next year’s profit will be at the lower end of its targeted range, citing the impact of weak economic growth and higher fuel costs. Europe’s largest airline says EBITDA will reach about 2.5 billion euros.
It has struggled to implement a turnaround of its short haul and cargo activities amid competition on European routes.
And Deutsche Lufthansa, says sales at its main passenger arm won’t grow this year because of the impact of a rising euro. It also predicted an earnings decline from the cargo business.
Third quarter revenue was little changed at 8.3 billion euros, but operating profit fell 12 percent.
Saxo Bank's James Helliwell believes in light of Lufthansa's restructuring and the 2014 outlook on its cargo business, consensus is becoming more bullish on the German carrier but analysts are seemingly more bearish on Air France.
01:25 minutes
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