BERLIN: Shares in Lufthansa tumbled as markets opened on Tuesday before rebounding, after Europe’s largest airline group blamed a steep first-quarter operating loss on rising fuel prices.
After dropping almost five per cent at open, Lufthansa stock was down around 0.7 per cent by 10:20 in Frankfurt (0810 GMT), trading at 21.93 euros ($24.80).
The Frankfurt-based group had issued preliminary first-quarter results, revealing an adjusted operating loss (EBIT) of 336 million euros.
In the same period in 2018, the European airline giant had posted a positive bottom line of 52 million euros. But increased competition in Europe and a higher fuel bill bit into the opening months of 2019.
Lufthansa said their fuel costs were 202 million euros higher year-on-year, while sales increased three per cent to 7.9 billion euros.
The group spent 6.1 billion euros on fuel last year, 850 million euros more — and costs are set to rise another 650 million this year. — AFP
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