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Lufthansa Points at Pension Costs Marring Earnings

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Deutsche Lufthansa AG said it sees “great pressure to act” to reduce a swelling pension deficit as it seeks to overcome a series of strikes that cast a shadow on first-quarter earnings.

Pension provisions surged 41 percent to 10.2 billion euros ($11.3 billion) in the three months ended March 31, pushing the equity ratio down to 7.5 percent, the company said in an earnings report Tuesday. The shares traded 0.4 percent higher at 12.72 euros as of 10:26 a.m. after initially dropping as much as 1.6 percent in Frankfurt.