Lufthansa: stock crashes after profit warning

(CercleFinance.com) - The Lufthansa share is in a spin today, losing 12% in Frankfurt, after the airline cut its target range for adjusted its operating margin in 2019, to between 5.
5% and 6.5% (vs. between 6.5% and 8% previously), which suggests operating profit of between 2 billion and 2.4 billion euros.

The currently strong performance in the airline's long-haul flights has only partially offset the deterioration of prices in Europe that has resulted from overcapacity in the market and aggressive competition from low-cost airlines, it explained.

In addition, the German airline says that, in its H1 accounts it will integrate a 340 million euro provision for tax risk, relating to a tax case that has been opened in Germany that dates back to the years 2001 to 2005.



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