Christoph Franz, CEO of Lufthansa has confirmed that the airline expects to be able to remain profitable throughout 2011. At the same time Franz conceded that he was not able to give a clear outlook for the full year due to the uncertain situation in Japan which has thus far cost Lufthansa €16 million in lost revenue in the first quarter while unrest in North Africa has had a far larger impact costing €22 million during the year’s first three months alone.
Interestingly Lufthansa has confirmed that it has not been able to pass on the cost of the new German eco-aviation tax implemented in January to customers, leading to a cost impact of between €8 to €45 depending on the route.
Franz confirmed expects fuel prices to rise faster than ticket prices. A worrying comment for the outlook of European airlines which further confirms the problems of overcapacity in the European airline market.