Lufthansa shares plunge after profit warning
At 0753 GMT, the shares were down 12.5%
FRANKFURT AM MAIN: Shares in German airline giant Lufthansa plunged more than 12 per cent on Monday after the group posted a profit warning.
At 0753 GMT, the shares were down 12.5 per cent at €15.48 (Dh63.7), underperforming Frankfurt’s main DAX index which was up 0.12 per cent.
In a statement issued late on Sunday, the Frankfurt-based group said it now expects to reach an operating margin of between 5.5 to 6.5 per cent, down from an earlier estimate of 6.5 to 8.0 per cent.
The revision in its annual targets corresponds to an operating profit of between €2.0 to €2.4 billion. The outlook also factors in a fuel cost increase of €550 million.
Further, it said it would set aside €340 million over “tax risk” linked to a case in Germany between 2001 and 2005.
Lufthansa plunged into the red in the first quarter of this year, but when they were announced it April it had stuck to its annual targets.