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00:00:00
>> It's the kind of climate airlines dread, lower fares and higher fuel costs clouding revenues. But that's exactly what makes Lufthansa's forecast so surprising. The German carrier expects pre-tax profit this year to be only slightly lower than 2016 revenues, which came in at 1.75 billion euros. Reuters' European airlines correspondent Victoria Brine was at the announcement in Munich airports.
00:00:25
>> What is interesting is that Lufthansa is seeing a return of the US and Asian leisure traveler. Those travelers had stayed away last year as a result of the terror attacks that we saw in France and in Belgium.>> Analysts had expected a much sharper drop in revenues.
00:00:42
Lufthansa's fuel bill alone will go up to 350 million euros this year, but the airline said it expects the decline in ticket revenues to ease. Prices have come under pressure in Europe because of competition from low cost rivals. The battle of the market share has created an oversupply.
00:00:58
The airline said its savings won't be enough to make up for it. But that may change once it factors in the deal it's made with pilots to end a long running pay dispute.>> That is going to save Lufthansa's a lot of money in the long run. They think it's gonna reduce their pilot cost by about 15% per year, it's equivalent to about 150 million euros, they've calculated.
00:01:18
>> And to put an end to years of on and off strikes. Not only saving money but making them a more attractive prospect to any passengers who have been put off.