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Pin to quick pickseasyJet Share News (EZJ)

Share Price Information for easyJet (EZJ)

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Share Price: 456.60
Bid: 452.00
Ask: 475.00
Change: 0.00 (0.00%)
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Lufthansa flies higher as it lifts 2016 profit target; peers get a boost

Thu, 20th Oct 2016 12:01

(ShareCast News) - Deutsche Lufthansa shares flew higher on Thursday as the airline lifted its earnings forecast for the year and posted better-than-expected earnings for the first nine months.Adjusted earnings before interest and taxes for the nine months came in at €1.68bn, down a touch from €1.69bn in the same period a year ago but ahead of expectations of €1.53m.Lufthansa, which issued a profit warning back in July, said that compared to previous guidance, the "difficult-to-forecast short-term bookings of business travellers" in September have developed better than expected.The airline said it now expects full-year adjusted EBIT to be around the same as in 2015, versus previous guidance that it would come in below last year.Lufthansa expects revenues at constant currency to fall by 7% to 8% in the fourth quarter, which is a one percentage point lower decrease compared to what was expected in July.Unchanged, unit costs excluding fuel and currency effects are expected to rise by 2% to 3% in the quarter.On current projections, fuel costs will fall by around €140m in the fourth quarter on the same period a year ago. The other business segments are expecting cumulative earnings slightly below the same period last year in the fourth quarter.The group said the capacity and steering measures initiated after the decline in long-term bookings were successful."However, political and economic uncertainties continue to significantly burden long-term bookings, especially on long-haul routes to Europe. Forecasting short-term bookings therefore remains challenging and may lead to significant volatility in earnings going forward."At 1210 BST, Lufthansa shares were up 7.1% to €11.20. Peers also got a boost, with British Airways owner International Consolidated Airlines Group up 2.6%, Ryanair up 3%, and EasyJet up 2%.
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