Germany's Lufthansa Airlines Grounds 1300 Flights. #Gravitas

Gravitas: Lufthansa In Turbulence: 180,000 Passengers Stranded At Airports

Lufthansa on Thursday said it was slashing 700 to 800 jobs at its Austrian Airlines subsidiary, more than a tenth of the workforce there, to cut costs in the face of "brutal competition" from rival carriers.

Lufthansa CEO Carsten Spohr said the cull would help Austrian Airlines, which could end the year in the red, achieve "savings of 90 million euros&nbsp;per year" from the end of 2021.

The small carrier was locked "in the mother of all battles" in Vienna with low-cost rivals Ryanair and Wizz Air, Spohr told reporters in a conference call after announcing a rise in the group's third-quarter revenues.

News of the jobs cull sent shares in Lufthansa soaring by 8.8 percent to 17.6 euros by 1140 GMT, putting it at the top of the blue-chip DAX index in Frankfurt.

"We have to reposition ourselves to be able to survive in the brutal competition with budget carriers," Austrian Airlines boss Alexis von Hoensbroech said in a separate statement.

The planned job cuts amount to a loss of 700 to 800 full-time jobs by the end of 2021, out of a total workforce of 7,000 people, the statement added.&nbsp;

Most of the <a href="http://13.235.153.162/world/lufthansa-cabin-crew-union-stages-all-day-strike-at-smaller-airlines-257094">job losses</a> will come from not replacing departing workers.

The Lufthansa group -- which also includes Eurowings, Brussels and Swiss airlines -- earlier on Thursday said it was on track to meet its full-year outlook despite a "challenging market environment".

The carrier booked a net profit of 1.15 billion euros&nbsp; between July and September, up four percent year-on-year.

But the jump was mainly thanks to accounting effects, with the group's operating profit adjusted for some one-off items, actually falling eight percent to 1.3 billion euros.

Lufthansa said it had faced higher than expected fuel costs that were only partially offset by cost-cutting efforts.

And like rival airlines it was grappling with "a general slowdown in the global economy", it said in a statement.

Revenues for the period were up two percent to 10.2 billion euros.

Lufthansa's chief financial officer Ulrik Svensson said it was "vital" that the group took action "to further reduce our costs".

Aside from the job losses at Austrian Airlines, the group is hoping that a renewed focus on the Vienna hub and aircraft replacements will further trim costs at the struggling subsidiary.

Looking ahead, Lufthansa said it was on track to meet its 2019 goals.

It continues to expect adjusted earnings before tax and interest of 2.0-2.4 billon euros while revenues are predicted "to rise by a single-digit percentage amount".

But it lowered its earnings outlook for Lufthansa Cargo, blaming "current weak market demand".

The group's total fuel costs for the year are expected to reach 6.8 billion euros, 650 million euros more than in 2018.

Thursday's announcements came as Lufthansa faced a major strike by German cabin crew on Thursday, the first of a two-day walkout that has led to 1,300 flight cancellations.

Lufthansa on Thursday said it was slashing 700 to 800 jobs at its Austrian Airlines subsidiary, more than a tenth of the workforce there, to cut costs in the face of "brutal competition" from rival carriers.

Lufthansa on Thursday said it was slashing 700 to 800 jobs at its Austrian Airlines subsidiary, more than a tenth of the workforce there, to cut costs in the face of "brutal competition" from rival carriers. Lufthansa CEO Carsten Spohr said the cull would help Austrian Airlines, which could end the year in the red, achieve "savings of 90 million euros per year" from the end of 2021. The small carrier was locked "in the mother of all battles" in Vienna with low-cost rivals Ryanair and Wizz Air, Spohr told reporters in a conference call after announcing a rise in the group's third-quarter revenues. News of the jobs cull sent shares in Lufthansa soaring by 8.8 percent to 17.6 euros by 1140 GMT, putting it at the top of the blue-chip DAX index in Frankfurt. "We have to reposition ourselves to be able to survive in the brutal competition with budget carriers," Austrian Airlines boss Alexis von Hoensbroech said in a separate statement. The planned job cuts amount to a loss of 700 to 800 full-time jobs by the end of 2021, out of a total workforce of 7,000 people, the statement added. Most of the job losses will come from not replacing departing workers. The Lufthansa group -- which also includes Eurowings, Brussels and Swiss airlines -- earlier on Thursday said it was on track to meet its full-year outlook despite a "challenging market environment". The carrier booked a net profit of 1.15 billion euros between July and September, up four percent year-on-year. But the jump was mainly thanks to accounting effects, with the group's operating profit adjusted for some one-off items, actually falling eight percent to 1.3 billion euros. Lufthansa said it had faced higher than expected fuel costs that were only partially offset by cost-cutting efforts. And like rival airlines it was grappling with "a general slowdown in the global economy", it said in a statement. Revenues for the period were up two percent to 10.2 billion euros. Lufthansa's chief financial officer Ulrik Svensson said it was "vital" that the group took action "to further reduce our costs". Aside from the job losses at Austrian Airlines, the group is hoping that a renewed focus on the Vienna hub and aircraft replacements will further trim costs at the struggling subsidiary. Looking ahead, Lufthansa said it was on track to meet its 2019 goals. It continues to expect adjusted earnings before tax and interest of 2.0-2.4 billon euros while revenues are predicted "to rise by a single-digit percentage amount". But it lowered its earnings outlook for Lufthansa Cargo, blaming "current weak market demand". The group's total fuel costs for the year are expected to reach 6.8 billion euros, 650 million euros more than in 2018. Thursday's announcements came as Lufthansa faced a major strike by German cabin crew on Thursday, the first of a two-day walkout that has led to 1,300 flight cancellations.

Austrian Airlines to slash jobs over 'brutal competition'

German flight attendants' union UFO on Sunday&nbsp;said it would stage an all-day strike at smaller German divisions of airline group Lufthansa in an escalating row over workers' pay and pensions.

The walkout at Lufthansa brands Germanwings, Eurowings, Lufthansa City Line and Sunexpress had initially been scheduled for 0300-0900 GMT, but the union in a statement on Sunday said industrial action would now be extended until midnight local time (2200 GMT), citing threats made by the airline over jobs as the reason.

A Lufthansa spokesman said the strike was illegal because UFO's status as a negotiator on behalf of staff was in doubt.

Lufthansa on Friday had offered a 2 per cent&nbsp;pay rise to cabin staff, prompting the union to call off a planned strike at Lufthansa's namesake core brand at hubs Frankfurt and Munich.

But the dispute deteriorated after UFO found the offer lacked concessions on expenses and employment conditions.

The cabin crew union has for months fought with the airline in court over UFO's legal status. Lufthansa claims the union's new leadership team that took office earlier this year was not elected in a way that met legal requirements.

German flight attendants' union UFO on Sunday said it would stage an all-day strike at smaller German divisions of airline group Lufthansa in an escalating row over workers' pay and pensions.

German flight attendants' union UFO on Sunday said it would stage an all-day strike at smaller German divisions of airline group Lufthansa in an escalating row over workers' pay and pensions. The walkout at Lufthansa brands Germanwings, Eurowings, Lufthansa City Line and Sunexpress had initially been scheduled for 0300-0900 GMT, but the union in a statement on Sunday said industrial action would now be extended until midnight local time (2200 GMT), citing threats made by the airline over jobs as the reason. A Lufthansa spokesman said the strike was illegal because UFO's status as a negotiator on behalf of staff was in doubt. Lufthansa on Friday had offered a 2 per cent pay rise to cabin staff, prompting the union to call off a planned strike at Lufthansa's namesake core brand at hubs Frankfurt and Munich. But the dispute deteriorated after UFO found the offer lacked concessions on expenses and employment conditions. The cabin crew union has for months fought with the airline in court over UFO's legal status. Lufthansa claims the union's new leadership team that took office earlier this year was not elected in a way that met legal requirements.

Lufthansa cabin crew union stages all-day strike at smaller airlines

Brewing <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">no-deal Brexit</a> worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies.

A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact.

<a href="https://www.wionews.com/world/uk-plays-brexit-hardball-with-stubborn-european-union-pound-falls-to-a-two-year-low-239235">Sterling fell</a> as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017.

Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October&nbsp;31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union.

"The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin.

"We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place.

It was not just sterling reeling either.

Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy.

Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way.

Germany's 10-year government bond yield was hovering near the minus 0.40% mark.

European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red.

With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter.

"Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&amp;P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting."

Aussie Gold

Asia had been a bit more positive overnight.

Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%.

Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day.

The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target.

Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures.

Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer.

US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis.

Brewing no-deal Brexit worries sent the pound sinking towards a two-year low versus the euro and roughed up Irish bonds on Tuesday, while stock markets wilted before what is expected to be the first cut in rates since the financial crisis. Europe's markets suffered a stormy start as the pound followed its worst day of the year with another 0.5% swoon against all the major currencies. A blizzard of fiery talk on Monday that included the new UK Prime Minister Boris Johnson called his predecessor's Brexit plans dead and its new foreign minister labelling the European Union "stubborn" kept the slide intact. Sterling fell as far as $1.2120, which was its lowest against the dollar since March 2017, and to 91.85 pence per euro, the weakest since September 2017. Options markets were pointing to more pain too. Three-month implied volatility, a contract that expires just before the October 31 Brexit deadline, jumped to over 11 vols, the highest since before March 29, the original date for Britain to leave the European Union. "The pound is in a very precarious state, it is as simple as that," said TD Securities' European head of currency strategy Ned Rumpeltin. "We are now in a different regime," he said, referring to Johnson's explicit agenda of taking Britain out of the EU, whether or not transitional trading agreements are in place. It was not just sterling reeling either. Irish government bond yield spreads over Germany hit their widest levels in over a month at 24 basis points, on worries about the damage a no-deal Brexit would do to Ireland's economy. Other eurozone government bond yields were holding near recent lows ahead of the Federal Reserve meeting which is expected to deliver a 25 basis point rate cut on Wednesday and potentially signal more on the way. Germany's 10-year government bond yield was hovering near the minus 0.40% mark. European shares slipped as grim forecasts from German chemicals and drugs giant Bayer and airline Lufthansa soured sentiment, although the weakness of the pound kept London's blue-chip FTSE index just about out of the red. With concerns about global growth still bubbling among investors, a GfK survey also showed German consumer morale worsening for the third month in a row heading into August as trade disputes bit in Europe's biggest exporter. "Most markets are down this morning," said Simona Gambarini, a markets economist at Capital Economics. "The S&P closed lower yesterday. We have a few data releases regarding the eurozone that could push equity prices down but I think everyone is waiting for the Fed meeting." Aussie Gold Asia had been a bit more positive overnight. Japan's Nikkei rose 0.4%, showing a limited reaction to the Bank of Japan's widely anticipated decision to stand pat on monetary policy. Shanghai rose 0.3% and Hong Kong's Hang Seng edged up 0.2%. Australian stocks stole the glory again though with another record high, as buoyant mining shares added to tech-driven gains the previous day. The BOJ added that it would ease policy again "without hesitation" if the economy loses momentum for achieving the central bank's 2% inflation target. Also drawing some attention were US-China trade negotiations which begin in Shanghai on Tuesday, although expectations for progress during the two-day meeting are low with the markets hoping the two sides can at least detail commitments for "goodwill" gestures. Among commodities, crude oil prices extended the previous day's gains, with the Fed's expected easing fuelling optimism that it would boost the economy and fuel demand in the world's biggest oil consumer. US crude futures were up 0.65% at $57.24 per barrel and Brent crude added 0.6% to $64.09. Gold was down 0.1% at $1,425 per ounce.

Stormy sterling sinks again, stocks wilt before Fed

British Airways and Lufthansa abruptly suspended flights to Cairo from Saturday(July 20) over security concerns but giving no details about what may have prompted the move.

British Airways and Lufthansa suspends flights to Cairo

A group of thieves stole $5 million in cash, which had been due to travel from Brazil to Switzerland aboard a Lufthansa jet, at a large freight airport near Sao Paulo, police said Monday.

The spectacular heist, which took place late Sunday, was completed in a matter of minutes, and authorities have yet to arrest a suspect.

The crooks entered Viracopos International Airport`s freight terminal using a pickup on which they had &quot;placed stickers mimicking the runway security company`s logo,&quot; federal police said in a statement.

Germany-based Lufthansa`s plane had been traveling from Guarulhos airport in Sao Paulo and was making a stop at Viracopos - Brazil`s biggest freight terminal - with Zurich as its final destination.

The stolen money had been held under the auspices of secure transport provider Brinks, according to the Folha de Sao Paulo newspaper.

The daily said five men had threatened security agents on the runway before taking off with the cargo, in barely six minutes.

There was no immediate sign of injuries, the airport said.

Cargo theft is on the rise in Brazil, where most targets are semi-trucks, especially those serving Rio de Janeiro.

A group of thieves stole $5 million in cash, which had been due to travel from Brazil to Switzerland aboard a Lufthansa jet, at a large freight airport near Sao Paulo, police said Monday

A group of thieves stole $5 million in cash, which had been due to travel from Brazil to Switzerland aboard a Lufthansa jet, at a large freight airport near Sao Paulo, police said Monday. The spectacular heist, which took place late Sunday, was completed in a matter of minutes, and authorities have yet to arrest a suspect. The crooks entered Viracopos International Airport`s freight terminal using a pickup on which they had "placed stickers mimicking the runway security company`s logo," federal police said in a statement. Germany-based Lufthansa`s plane had been traveling from Guarulhos airport in Sao Paulo and was making a stop at Viracopos - Brazil`s biggest freight terminal - with Zurich as its final destination. The stolen money had been held under the auspices of secure transport provider Brinks, according to the Folha de Sao Paulo newspaper. The daily said five men had threatened security agents on the runway before taking off with the cargo, in barely six minutes. There was no immediate sign of injuries, the airport said. Cargo theft is on the rise in Brazil, where most targets are semi-trucks, especially those serving Rio de Janeiro.

Thieves steal $5 mn from Lufthansa plane in Brazil

German flag carrier Lufthansa warned Tuesday that &quot;horrific&quot; terror attacks in Europe were having a &quot;tangible impact&quot; on business, with second-quarter profits down 17 per cent. 
 
Advance bookings were down sharply, the airline said, as net profits for the three months ending June came in at 437 million euros ($488 million). 
 
&quot;Horrific terror attacks are making people feel unsafe,&quot; chief executive Carsten Spohr said in a conference call with reporters on Tuesday. 
 
&quot;Because of repeated terror attacks in Europe and political and economic uncertainty, advance bookings, especially on long-haul flights to Europe, have fallen significantly,&quot; finance director Simone Menne said. 
 
The weak profits came despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros. Compared with the figure for the first half of 2015, net profits took a 55 per cent blow, falling to 429 million Euros. 
 
Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered &quot;a complete recovery as not likely anymore.&quot; Its European rival Air France-KLM also warned last week about the impact of recent attacks on the airline. 
 
Air France-KLM&#39;s chief financial officer Pierre-Francois Riolacci said unit revenue fell by 5.6 per cent in the second quarter, which he put down to the sluggish global economic recovery and &quot;most of all the effect of the terror attacks that have struck Europe in recent quarters&quot;. 
 
A spate of attacks targeting France and Germany at the height of peak tourist season in Europe has hurt the industry. France, the world&#39;s top tourist destination, is reeling from an attack at the Riviera town of Nice on Bastille Day when a gunman drove a 19-tonne truck into a crowd of revellers, killing 84. 
 
That was the third major strike against France in less than 18 months, coming just eight months after Islamic State gunmen and suicide bombers stormed bars, restaurants, a concert hall and the national stadium in Paris, killing 130 people. 
 
In January last year, 17 were killed in another assault at various sites including the offices of the Charlie Hebdo magazine and a Jewish supermarket in Paris. 
 
Germany was meanwhile hit in July by an axe attack that left five people, including four tourists from Hong Kong, wounded, a gun rampage, a machete assault and a suicide bomb attack. 
 
A spokeswoman for the German tourism board told AFP last week that &quot;there haven&#39;t been any cancellations&quot; in the immediate aftermath of the attacks in Europe&#39;s biggest economy. 
 
But in France, flight reservations following the Nice attack were down 20 per cent. Between January and July 10 arrivals to France by air were down 5.8 per cent, and down 11 per cent to Paris. 
 
(AFP) 
&nbsp;

The weak profits for the airline have come in despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros

German flag carrier Lufthansa warned Tuesday that "horrific" terror attacks in Europe were having a "tangible impact" on business, with second-quarter profits down 17 per cent. Advance bookings were down sharply, the airline said, as net profits for the three months ending June came in at 437 million euros ($488 million). "Horrific terror attacks are making people feel unsafe," chief executive Carsten Spohr said in a conference call with reporters on Tuesday. "Because of repeated terror attacks in Europe and political and economic uncertainty, advance bookings, especially on long-haul flights to Europe, have fallen significantly," finance director Simone Menne said. The weak profits came despite the lower oil price, which resulted in a fuel cost boon of 597 million Euros. Compared with the figure for the first half of 2015, net profits took a 55 per cent blow, falling to 429 million Euros. Lufthansa had already said last month that the jittery atmosphere in Europe was hitting its business and considered "a complete recovery as not likely anymore." Its European rival Air France-KLM also warned last week about the impact of recent attacks on the airline. Air France-KLM's chief financial officer Pierre-Francois Riolacci said unit revenue fell by 5.6 per cent in the second quarter, which he put down to the sluggish global economic recovery and "most of all the effect of the terror attacks that have struck Europe in recent quarters". A spate of attacks targeting France and Germany at the height of peak tourist season in Europe has hurt the industry. France, the world's top tourist destination, is reeling from an attack at the Riviera town of Nice on Bastille Day when a gunman drove a 19-tonne truck into a crowd of revellers, killing 84. That was the third major strike against France in less than 18 months, coming just eight months after Islamic State gunmen and suicide bombers stormed bars, restaurants, a concert hall and the national stadium in Paris, killing 130 people. In January last year, 17 were killed in another assault at various sites including the offices of the Charlie Hebdo magazine and a Jewish supermarket in Paris. Germany was meanwhile hit in July by an axe attack that left five people, including four tourists from Hong Kong, wounded, a gun rampage, a machete assault and a suicide bomb attack. A spokeswoman for the German tourism board told AFP last week that "there haven't been any cancellations" in the immediate aftermath of the attacks in Europe's biggest economy. But in France, flight reservations following the Nice attack were down 20 per cent. Between January and July 10 arrivals to France by air were down 5.8 per cent, and down 11 per cent to Paris. (AFP)

Lufthansa says terror attacks impacting business

lufthansa

Lufthansa, News on Lufthansa, stories on Lufthansa, articles on Lufthansa, Lufthansa stories at Wion, Lufthansa news, Lufthansa latest news