Deutsche Lufthansa, Europe's second-largest airline, cut its forecast for operating profit next year as weaker economic growth weighs on ticket prices.
Operating income will be “significantly higher” than 2014, the company said in a statement today.
That compares with an earlier forecast for the measure to rise to about €2 billion in 2015. The company reiterated a target for operating profit to rise to about €1 billion this year.
The cut is mainly due to a lower prediction for global economic growth which will weigh on revenue, the company said.
Profit will also be hurt by a “sharp” increase in pension costs due to the much lower discount rate.
Lufthansa has endured a wave of strikes by pilots this year who are demanding the airline maintains retirement payments.
The forecast for this year includes the impact of the work stoppage, which Lufthansa said came in at about €170 million. Any additional walkouts this year have not been factored into the outlook, the airline said.
Bloomberg