Lufthansa yesterday raised its fullyear operating profit projection to €1.3 billion from the previous €1.1 billion. The carrier reported a €1.38 billion operating profit in 2007. Lufthansa said the increase in its forecast is “substantially attributable to a more stable result development in the fourth quarter than was previously expected.” It cited falling fuel prices and “favourable valuationeffects” without elaborating. … [Read more...] about EUROPE & CIS: Lufthansa projects rise in '08 profit

SAS, Scandinavia’s biggest airline, is set to cease freighter services and shrink other cargo operations as part of a radical restructuring to stem losses and retain its independence in the fast consolidating European airline industry. The part state-owned carrier said in future its freight unit, SAS Cargo, “will focus on selling belly cargo capacity forthe group’s airline operations.” It said other activities would be discontinued or outsourced to third parties. SAS … [Read more...] about EUROPE & CIS: SAS cuts freighter unit

Air France-KLM has plunged into a third-quarter operating loss of €194 million euros, reflecting what the airline described as a deepening economic crisis. The losses were expected after Europe’s largest airline group warned of a quarterly loss of 200 million euros last month, as the global economic crisis pulls the airline sector deep intothe red. Overcapacity and evaporating fuel surcharges put pressure on cargo pricing in the third quarter, driving down unit revenue as freight … [Read more...] about EUROPE & CIS: Air France-KLM plunges into red

Italy’s Alitalia Cargo, a subsidiary of the country’s former national carrier and Europe’s seventh-largest air freight operator last year, may be sold to Cargoitalia’s parent Alis Aerolinee Italiane that has made a binding offer of €14.5 million for the company’s five MD-11 freighters. Cargoitalia says the sale must be completed by 9 March and if it is, it will hire 15 pilots within one month of closing the deal and another 15 pilots for each MD-11 that enters its … [Read more...] about EUROPE & CIS: Cargoitalia parent makes offer for Alitalia Cargo

As widely expected, Airbus has announced the first production cuts in response to the deepening recession which has sent the global aviation market into a tailspin. A growing number of airlines are seeking to defer or cancel aircraft deliveries, as they are forced to cut capacity to try to match falling demand for air traveland air cargo. Airbus and its rival Boeing are finding their record order backlogs no longer offer protection against the impact of the global recession, which is forcing … [Read more...] about EUROPE & CIS: Airbus cuts production as traffic plummets