German airline Lufthansa has reported sliding profits in the second quarter. Stiff competition from budget European carriers and rising operating costs are eating into the company's earnings.
Image: picture-alliance/chromorange/D. D. Mann
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Lufthansa said Tuesday its net profit fell to €226 million ($252 million) in April-June — a year-on-year drop of 70%, which was partly due to a €200-million tax provision.
The outlook was expected to remain gloomy at least until the end of the year, the Frankfurt-based airline said in a statement.
Fuel price increases, "persistent overcapacities" and "aggressive competition" from budget airlines in Europe, such as Ryanair and Easyjet, were taking their toll, the airline added. Economic prospects have also been tainted by global issues such as the US-China trade wars and Brexit.
The Lufthansa Group, which includes budget subsidiary Eurowings and smaller carriers in alliances like Austrian and Swiss Air, said there had been a 7% increase in costs, including a fuel bill that had risen by €225 million since the 2018 second quarter.
Despite a shrinking bottom line, the company saw sales increase by 4% to €9.6 billion compared to the same time last year.
Lufthansa said long-haul flights, particularly to Asia and North America, continued to turn a profit, while no frills Eurowings was struggling in the tough European market.
Chief Financial Officer Ulrik Svensson said the group was fighting particularly hard in Germany and Austria, and planned to take on the competition by "further reducing our costs and increasing our flexibility."
"We intend to make Eurowings a sustainably profitable airline," he added.
Frankfurt's benchmark DAX 30 index tumbled 1.5% in early afternoon on Tuesday, while Lufthansa slid 6% after making its announcement.
Last month, Lufthansa CEO Carsten Spohr slashed its adjusted earnings forecast for this year to €2 billion to €2.4 billion, down from the previous estimate of €2.4 billion to €3 billion.
The large, often stylized logos on airplane tails allow you to immediately recognize the airline when you spot a plane. Many use birds in their designs, but all companies want to let you know where they are based.
Image: S. Barbour/Getty Images
Qantas
The plane tails of Australia's national airline Qantas are embellished with a stylized kangaroo, hence the nickname "the Flying Kangaroo!" Even from a far distance, it's easy to tell which continent the plane comes from. After all, kangaroos only exist in Australia. This animal has become a sort of national logo, appearing not only on planes but also on Australia's coat of arms and currency.
Image: S. Barbour/Getty Images
KLM Royal Dutch Airlines
In contrast to its Australian counterpart, the logo of KLM Royal Dutch Airlines is more factual. The abstract symbol of a crown in combination with the three letters KLM leaves no doubt as to which country this plane comes from. And that's what logos are all about.
Image: AFP/Getty Images/R. de Waal
Gambia Bird
The tiny West African state is a paradise for birds and their friends. More than 500 different kinds of birds live in the Gambia. Tourists don't even need to take birdwatching trips because many birds can be spotted in hotel gardens — they're just everywhere! Perhaps unsurprisingly, the Gambian national airline went for a bird as its logo when it was founded in 2012. Service ceased in 2014.
Image: flickr/Transport Pixels
Alaska Airlines
The Seattle-based airline has proved its creativity on several occasions during its 90-year-long history. The company was among the first airlines to sell tickets online and to offer online and automatic check-ins. Like its name, the logo of the airline refers to Alaska and its indigenous inhabitants, the Inuit.
Image: Reuters
Iran Air
A trade embargo and political tensions between 1980 and 2016 made it hard for Iran's state airline with headquarters at Tehran's Mehrabad airport to modernize its planes. But maybe the "homa," the mythological bird used in the logo, came to the rescue of the airline. According to Persian mythology, "homa" is believed to bring luck and joy while living its life entirely in the sky.
Image: Konstantin von Wedelstaedt
Air Tanzania
Over the years Tanzania's national airline has also had to face numerous challenges. Sometimes its fleet was in the air, sometimes not, and the airline's owners also frequently changed. It's certainly not the fault of the giraffe logo. The world's tallest animal looks so friendly and inviting on the plane;what passenger could say no to stepping onboard for a trip to Mount Kilimanjaro?
Image: flickr/stevesaviation
Takeoff into the future
A crane has served as the logo of Germany's largest airline since 1918. Some types of cranes cover enormous distances when they migrate, but others are considered pests due to their enormous appetites. Lufhansa is now flying into the future with a new logo design. The symbol will be the same, but the colors will change. Goodbye yellow and gray, hello simple white and blue!
