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Lufthansa expects good profit thanks to low oil prices

Staff writer ▼ | January 11, 2016
Lufthansa said it expects its fuel bill to be 14 percent lower in 2016 thanks to falling oil prices, which will help boost its profit next year after record earnings in 2015.
Airline   Oil has dropped around 70 percent since June 2014
Oil has dropped around 70 percent since June 2014, touching levels not seen in over a decade this week, bringing a boon to airlines because jet fuel is one of their main costs.

Lufthansa expects a fuel bill of 4.9 billion euros (3.6 billion pounds) in 2016 after 5.7 billion euros in 2015, it said on Friday in presentation slides.

That and other efforts to reduce costs will help boost profit in 2016, from expected adjusted earnings before tax and interest of between 1.75 and 1.95 billion euros in 2015.

Airlines body IATA predicts European airlines will see more benefit in 2016 from lower fuel prices because hedges made when the oil price was higher will unwind.