Lufthansa shares plunge after profit warning

18 June, 2019 12:00 AM printer

FRANKFURT AM MAIN: Shares in German airline giant Lufthansa plunged more than 12 percent on Monday after the group posted a profit warning.

At 0753 GMT, the shares were down 12.5 percent at 15.48 euros, underperforming Frankfurt’s main DAX index which was up 0.12 percent, reports AFP.

In a statement issued late Sunday, the Frankfurt-based group said it now expects to reach an operating margin of between 5.5 to 6.5 percent, down from an earlier estimate of 6.5 to 8.0 percent.

The revision in its annual targets corresponds to an operating profit of between 2.0 to 2.4 billion euros ($2.2 -2.7 billion).  The outlook also factors in a fuel cost increase of 550 million euros.