Frankfurt — On Thursday, German airline group Lufthansa said it achieved a record net profit in 2016, but offered only modest forecasts for the current year, squeezed between falling prices and higher costs. The Frankfurt-based firm reported net profit of €1.78bn for 2016 in a statement, a 4.6% increase on 2015’s figure and in line with its own and analysts’ expectations. "In a very demanding market environment, we successfully kept the Lufthansa Group’s margins at their record prior-year levels," CEO Carsten Spohr said at a Munich media conference. Spohr pointed to a successful cost-cutting programme as one of the main factors supporting the group’s performance. And a pay and pensions deal executives struck with cabin crew made up a large share of 2016’s profit, adding about €650m to Lufthansa’s bottom line. Lower fuel costs during 2016, relating to a trough in oil prices towards the start of the year, also lent the group a tailwind visible in its profits. That lift now belongs to ...
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