Saturday, July 20, 2019
Home Business Airlines Blame Stock Market After Lufthansa Warning - Indices & Actions

Airlines Blame Stock Market After Lufthansa Warning – Indices & Actions

Lufthansa has lowered its profit forecast for 2019 because of "low-cost airline competition in Europe".

Adjusted earnings before interest and taxes (EBIT) margin should be between 5.5% and 6.5%, compared with 6.5% to 8% previously, which implies a pre-tax Ebit of between two and two, 4 billion euros, against 2.4-3 billion previously targeted.

"Yields in European short-haul markets, particularly in the group's domestic markets, Germany and Austria, are affected by persistent overcapacity caused by carriers willing to accept significant losses to increase their market share. Said Lufthansa. He said the decline in revenues from his low cost subsidiary Eurowings was one of the main reasons for this warning. He also mentioned the overcapacity and high costs of kerosene, which could exceed by 550 million euros the level reached last year.

Last month, Ryanair stated that its annual profit was the lowest of the last four years and could fall further due to a "weary" tariff war.

The title Lufthansa drops more than 10% in the middle of the morning on the Frankfurt Stock Exchange bringing in its wake the entire European airline industry. The Stoxx transport index fell by 0.7%, the largest sectoral decline in Europe. Ryanair shares lost 5.7%, Easyjet lost 4.8%, Air France-KLM dropped 4.9% and IAG sold 2.6%.

Our analysis of the air transport sector:

The sector is going through a difficult time. Competition is becoming increasingly fierce, especially from low-cost airlines. It is also suffering from rising oil prices and rising trade tensions between China and the United States. We are very cautious about airlines. We had bought the Air France KLM stock speculatively shortly after the arrival of Benjamin Smith to less than 8.5 euros with a first goal at 12 euros and a second at 14.5 euros corresponding to the highest of the last 5 years . We keep the value a goal maintained.

The editorial advises you:

. (AirTrans tags) Air France-KLM Airlines blame for stock market blow after Lufthansa warning

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Must Read

PSG: Gueye at a step from Paris

After Sarabia, Herrera and Diallo, PSG is on track to conclude the fourth major arrival of its summer mercato, in the person of Idrissa...

CHAPTER TWO The entire movie cover sends The Losers Club home to Derry

James McAvoy has a first look at the upcoming trailer thrown It: Second chapter Total movie cover with all seven members of The Losers...

Shane Lowry imposes his dictatorship on Royal Portrush

Miguel Ángel BarberoSpecial Envoy to Portrush (Northern Ireland)Updated:07/20/2019 21: 23hA soccer field of sixty hectares, instead of one. That was the feeling that was...