Lufthansa profits up on lower costs but tougher times ahead

FRANKFURT, Germany (AP) — German airline Lufthansa repeated a warning that terrorism fears would weigh on bookings and profits in the second half of the year as it reported a solid increase in underlying profits in the first half thanks to cost controls and lower fuel prices.

[...] Lufthansa's cargo business saw a fall of 95 million euros in first-half earnings due to "massive market overcapacities" while yields from air freight had fallen to levels last seen during the financial crisis in 2009.

"The terrorist attacks in Europe and also the increasing political and economic uncertainties are having a tangible impact on passenger volumes," said Spohr, who noted a particular impact on forward bookings for long-distance flights to Europe.