Polish and company authorities say that Lufthansa (OTCQX:DLAKY) and General Electric (GE) will jointly invest some €250M in Poland to build an advanced plant servicing aircraft engines to be operational in 2018.
The facility will test and repair state-of-the-art engines for Boeing 747-8 jumbo jets for Lufthansa and for other airlines. Some 600 jobs are expected to be created as a result.
Lufthansa (OTCQX:DLAKY) is now facing its sixth day of strikes and has been forced to cancel an additional 890 short and long-haul flights.
With the walkouts costing an estimated €10M-€15M a day, Lufthansa is considering comments by Germany's VC union stating it would be willing to resume talks if a pay increase of around 5% were used as a basis for negotiations.
Lufthansa (OTCQX:DLAKY) pilots have called for renewed strikes this week. The German VC union will stage a 2-day walkout this Tuesday and Wednesday after talks with management broke down amid a longstanding clash over pay.
Last week, 2,800 flights more than 350,000 passengers were impacted by the industrial action. The labor unrest so far is estimated to have cost Lufthansa more than $20M.
Lufthansa (OTCQX:DLAKY) has been forced to cancel 876 of 3,000 scheduled flights Wednesday as Germany's pilots union goes on a two-day strike. It's the 14th walkout to plague the airline in a long-running pay dispute.
The canceled flights include 51 intercontinental flights and will affect some 100K passengers, including at least seven U.S.-bound flights one day ahead of the Thanksgiving holiday.
Shares have been down for seven straight sessions in Europe and today's trend may not change as investors react to more corporate earnings.
Germany's Lufthansa (OTCQX:DLAKY) announced its adjusted earnings before interest and taxes fell 6.5% in Q3, while Denmark's Maersk (OTCPK:AMKAF) reported quarterly profits that slumped 43% on lower freight prices.
Things aren't looking much brighter in the U.S. Futures are posting red signals after the Dow and S&P 500 broke below key levels on Tuesday due to more election uncertainty.
"Forward looking data is simply too weak. Nominal profitability remains at elevated levels due to oil but structural improvement to cost bases has been slow to materialize. Capacity is stubbornly high, demand risks are weighted to the downside and we see further pressure on pricing. In our view we need to see greater evidence of structural non-fuel cost improvement, margins to normalize for oil and/or the capacity outlook to improve before a re-rating is possible."
Downgrades Lufthansa to Sell from Hold. Air-France KLM to Sell from Hold. easyJet to Hold from Buy. Ryanair to Hold from Buy.
All operations at London's City Airport have been suspended after nine protesters occupied the runway by erecting a tripod and locking themselves together.
Following a series of conflicting reports on which campaign group had led the protest, U.K. Black Lives Matter released a statement on its social media accounts: "London City Airport is shutdown to protest the U.K.'s environmental impact on black people."