Deutsche Lufthansa AG (DLAKY) Shareholder/Analyst Call Prepared Remarks Transcript
Germany's largest airline, Lufthansa, is taking on additional fuel costs as the Middle East conflict poses 'enormous challenges.'
The company said the Middle East conflict is boosting demand in its passenger airlines and cargo business but has also increased fuel prices.
Lufthansa reported better-than-expected first quarter results on Wednesday, as strategic hedging helped the airline sidestep the impact of rising jet fuel prices, while labour disruptions were kept largely under control.
Portugal's government on Thursday asked Air France-KLM and Germany's Lufthansa to submit binding bids for a minority stake in flag carrier TAP, setting up a tight contest between the two European airline groups after closely matched initial offers, the only two it had received.
The Lufthansa Group said the cancellation of less profitable routes would save the equivalent of approximately 40,000 metric tons of jet fuel.
The German group said that the flights canceled are operated by several of its airlines, mostly its regional carrier CityLine, and will equal a 1% reduction in its passenger capacity.
The German carrier group said the measures were unavoidable due to the increase in prices since the start of the U.S.-Israel war against Iran.
A pilots' strike at Lufthansa and its low-cost subsidiary Eurowings caused hundreds of flight cancellations on Monday, affecting tens of thousands of passengers.
Lufthansa faces a one-day strike this week, the airline's third labor disruption in two months.
Flight attendants at Lufthansa and its German regional airline Lufthansa Cityline have voted overwhelmingly for strike action, their UFO union said in a statement on Friday.
Germany's Verdi union said on Friday that it has reached a collective bargaining agreement with airline Lufthansa for more than 20,000 ground staff after four rounds of negotiations.