Lufthansa says falling fuel prices will boost profits

[FRANKFURT] German airline Lufthansa said on Monday it expects to see a sharp increase in underlying profits this year as a result of falling fuel prices.

According to an investor presentation published on Lufthansa's website, the airline is pencilling in estimated fuel costs of 5.8 billion euros (US$6.9 billion) in 2015, down from 6.7 billion euros in 2014 thanks to falling oil prices.

The drop will be the "main driver" of a "significant" increase in operating profit in 2015, the presentation said.

The improved profit outlook cheered investors, and Lufthansa shares were among the biggest gainers on the Frankfurt stock exchange on Monday, adding 1.67 per cent to 14.30 euros in a slightly firmer market.

AFP