Air Berlin collapse added to Lufthansa's fourth-quarter revenues - CEO

Image
Reuters FRANKFURT
Last Updated : Dec 23 2017 | 4:55 AM IST

FRANKFURT (Reuters) - Lufthansa expects the collapse of smaller peer Air Berlin to have helped add around 150 million euros to its fourth-quarter revenues, Chief Executive Carsten Spohr told a German newspaper.

But he also said the added sales were offset by considerable additional costs, which he did not quantify, according to Frankfurter Allgemeine Sonntagszeitung.

Lufthansa added capacity after Air Berlin ceased flying in late October, for instance by using a 747 jumbo jet for the short flight between Frankfurt and Berlin to meet additional demand on that popular route.

The German flagship carrier had planned to buy large parts of Air Berlin's business when it was carved up, but it last week abandoned plans to buy Austrian unit Niki, which subsequently also filed for insolvency.

According to Frankfurter Allgemeine, Lufthansa had already provided around 70 million euros in funding to Niki to keep its planes flying when antitrust concerns forced it to back out of the purchase.

It stands a slim chance of recovering that money due to Niki's insolvency. The administrators of Niki are currently in talks with possible buyers for the Austrian unit and aim to strike a deal by the end of next week.

(Reporting by Maria Sheahan, editing by G Crosse)

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 23 2017 | 4:40 AM IST

Next Story