Lufthansa: Profits halved in Q2, strikes weigh on company
Lufthansa halves net profit in Q2: The accounts are weighed down by the drop in ticket prices and the impact of strikes.In particular, net profit was 469 million euros, a 47% drop compared to the previous year, despite a “normalization of ticket prices”, which nevertheless remain “well above” the pre-pandemic level.
In the third quarter, Lufthansa expects earnings to be single-digit percentage points below 2023 levels, while unit costs are expected to increase by a similar amount. “Due to the continued high demand for flights, this has resulted in a significant year-on-year increase in capacity and sales volumes for our passenger airlines,” said Chief Executive Carsten Spohr.
“However, market-wide capacity growth has intensified pricing pressure for passenger airlines, causing yields to decline.” Overall, the company expects third-quarter adjusted earnings before interest and taxes (EBIT) to fall short of the prior-year level, amounting to 1.5 billion euros ($1.6 billion), due to difficulties encountered by Lufthansa Airlines, its main passenger brand.
Lufthansa recently received the green light from the European Union to purchase a 41% stake in Ita.
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