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| Lufthansa shares dive 11% on profit alert | Lufthansa shares dive 11% on profit alert |
| (35 minutes later) | |
| Shares in German airline Lufthansa have fallen sharply after the carrier said it would not reach its profit targets for the next two years. | Shares in German airline Lufthansa have fallen sharply after the carrier said it would not reach its profit targets for the next two years. |
| It blamed competition from other airlines, which is keeping ticket prices lower on its main European and US routes. | It blamed competition from other airlines, which is keeping ticket prices lower on its main European and US routes. |
| A three-day pilot strike in April also wiped 60m euros off its annual profit. | A three-day pilot strike in April also wiped 60m euros off its annual profit. |
| Lufthansa said it expected operating profits of 1bn euros this year, against a forecast of 1.3bn-1.5bn euros. | Lufthansa said it expected operating profits of 1bn euros this year, against a forecast of 1.3bn-1.5bn euros. |
| Currency restrictions in Venezuela preventing airlines from repatriating revenues from ticket sales there had lowered results by a further 60m euros, Lufthansa said. | |
| At one stage, the airline's share price fell as much as 11%. By mid-morning, shares were 7.5% lower. | |
| Lufthansa, which is Europe's biggest airline in terms of sales, also reduced its 2015 earnings target to 2bn euros from 2.65bn euros. | |
| Tough conditions | |
| "The revenue risks mentioned when we presented the quarterly figures in early May have unfortunately materialised," chief financial officer Simone Menne said. | |
| In May, it said market conditions were tough and that yields - a measure of revenue per passenger - were coming under pressure at its Frankfurt and Munich hubs. | |
| Mr Menne said prices on European and US routes were under pressure because more seats were being offered by rivals. | |
| It has previously complained that Gulf airlines including Emirates, Qatar Airways and Etihad enjoy competitive advantages because they are state-owned. | |
| The profit warning comes just over a month after the appointment of new chief executive Carsten Spohr. | |
| He will present details of restructuring measures in July, the company said. | |
| Lufthansa will also "noticeably" reduce the number of seats it offers over the winter, Mr Menne said. |