Investing.com – German airline Lufthansa (ETR:) outlined plans to cut costs after a first quarter marked by costly strikes and flight disruptions.
The airline promised to cut operating costs, halt new projects and consider the “need” for more staff in administrative areas to help strengthen its core Lufthansa brand after it announced losses between January and March.
The labor disputes have cost the airline more than 350 million euros, a sum that chief financial officer Remco Steenbergen described as “significant.”
“We cannot be satisfied with the operating results for the first quarter,” Steenbergen said. “We will be working intensively in the coming months to offset the impact of rising costs.”
Earlier this month, Lufthansa announced a group-wide first-quarter loss of 849 million euros, wider than the 273 million euro loss in the previous year. As a result, shares were little changed on Tuesday.
The company warned that planned additions to available capacity in the second quarter would be lower than initially expected due to investments in operational stability and delays in aircraft deliveries. But Lufthansa said its forecast for the summer season was “very good”, adding that bookings for the key travel season were 16% higher than the previous year.
“[B]Demand for road vehicles remains strong and the broader picture for the industry for the summer is positive, with orders continuing to flow as the company expands its network,” Bernstein analysts said in a note to clients.