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Lufthansa freezes investments amid gloomy outlook

26 November 2011

Deutsche Lufthansa has decided to freeze all non-essential investment for the next six months due to the weak global economic environment.

Lufthansa currently has 202 aircraft worth 19 billion euros ($25.37 billion) at list prices on order for delivery through 2018. Like peers, it is banking on newer, more fuel-efficient planes to help it keep costs under control.

Soaring fuel costs and the euro zone debt crisis have taken a toll on European airlines this year, with Lufthansa cutting its 2011 outlook two months ago and industry body IATA forecasting a weak end to the year for the sector.

source: Reuters.com

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