European Airlines Warn of Turbulence Ahead

The video discusses the challenges faced by European airlines, particularly Lufthansa, in maintaining profit forecasts due to factors like Brexit, severe weather, and terror threats. These issues have led to decreased demand and increased competition, forcing airlines to reconsider their strategies. The video also touches on the difficulty of maintaining a positive safety reputation in the industry.

What recent events have led major European airlines like Lufthansa to cut their profit forecasts?

• Declining oil prices and geopolitical events

• Improved economic growth

• Increased competition from new airlines

• Rising fuel costs

How have terror threats affected airline profits in Europe?

• Reduced interest from international travelers

• Increased demand for flights to Europe

• Higher ticket prices

• More flights being added to European routes

What are two potential strategies airlines might use to address reduced demand?

• Increase the number of flights

• Lower prices or accept empty seats

• Invest in new aircraft

• Expand to new markets

Why is it challenging for airlines to change their safety reputation?

• Passengers do not care about safety records

• Airlines do not invest in safety measures

• Safety rankings are not widely published

• Reputation is hard to manipulate despite past incidents

What underlying issue is mentioned as a reason for airlines' current challenges?

• Too much capacity in the market

• Lack of government support

• High employee turnover

• Increased environmental regulations