Eurowings expansion holds back Lufthansa first-quarter profit

Lufthansa on Thursday reported a slight rise in adjusted earnings before interest and tax to €26 million, far short of the €81.3 million forecast by analysts. (Reuters)
Updated 26 April 2018
0

Eurowings expansion holds back Lufthansa first-quarter profit

BERLIN: German airline Lufthansa said costs to expand its Eurowings budget carrier held back profit growth in the first quarter of the year, and it lowered its forecast for 2018 capacity growth.
Lufthansa on Thursday reported a slight rise in adjusted earnings before interest and tax (EBIT) to €26 million, far short of the €81.3 million forecast by analysts in a Reuters poll.
Lufthansa is rapidly growing its Eurowings brand to fill the gap left by the collapse of Air Berlin.
Lufthansa said one-off costs from integrating parts of Air Berlin pushed Eurowings to an adjusted loss of €203 million in the first-quarter and said one-off expenses will continue to weigh in coming months.
It also lowered its guidance for total capacity growth to 8.5 percent from its previous forecast of 9.5 percent.


OPEC may cancel April meet, but hold steady on oil output: Saudi energy minister

Saudi Arabia’s energy minister Khalid Al-Falih that April may be premature to make any production decision for the second half. (Reuters)
Updated 18 March 2019
0

OPEC may cancel April meet, but hold steady on oil output: Saudi energy minister

  • ‘As long as the levels of inventories are rising and we are far from normal levels, we will stay the course guiding the market toward balance’
  • ‘The consensus we heard ... is that April will be premature to make any production decision for the second half’

BAKU: OPEC and its non-OPEC partners need to reconsider if there is a need for a meeting in April, Saudi Arabia’s energy minister said on Monday, adding that there was no pressure from the United States to increase supply.
“We are not under pressure except by the market,” Khalid Al-Falih told reporters ahead of a meeting of the Joint Ministerial Monitoring Committee (JMMC) in Baku, the capital of Azerbaijan.
“As long as the levels of inventories are rising and we are far from normal levels, we will stay the course guiding the market toward balance.”
The JMMC includes major oil producers Saudi Arabia and Russia and monitors the oil market and conformity levels with supply cuts.
“There is a consensus that has also emerged that no matter what, we should stay the course until the end of June.”
Asked whether he was updated on whether the United States administration would extend the waivers it granted to buyers of Iranian crude, which are due to end in May, Al-Falih said: “Until we see it hurting consumers, until we see the impact on inventory, we are not going to change course.”
The oil producers are due to meet next in April in Vienna, but Al-Falih said this may not happen.
“The consensus we heard ... is that April will be premature to make any production decision for the second half,” Al-Falih said.
“We may not have a meeting in April,” he said, adding that the JMMC may recommend this later on Monday.