In its earnings, published Thursday, Lufthansa attributed its lift in profits to the 309 million euro reduction in its fuel costs, along with a rise in sales and capacity utilization.
"The oil is definitely helping us. In the first half year, that was really a huge tailwind and also for the rest of the year we see the oil prices will stay low, and at least on the short-term does help. We have reduced our prognosis for the oil to 6 billion from 6.2 billion," Menne told CNBC.
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However, Menne admitted that with more affordable pricing from other competitors, this was causing pricing pressure.
"We see that the pricing pressure is there and will continue to stay, as the low cost carriers are entering into our home markets. On the other hand, we are well prepared, because we have our new platform, Eurowings, with a different cost space than the premium platform."
"We are pretty sure than our new fares structure is fitting into the market and the needs to our customers. The individualized possibility to buy what you need helps our passengers, and the transparency makes everybody see that we are very competitive in our pricing I don't think this is a risky strategy."
Stocks in the airline rose 3.5 percent in early trade, making it a two month high for the firm, according to Reuters. However, by the close, the stock had pared gains to close around 2.8 percent lower.
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