Admin I Friday, July 12, 2024
BERLIN – German aviation giant Lufthansa Group has slashed its financial forecast for the year following a disappointing performance in the second quarter.
The firm – which encompasses Germany’s flagship Lufthansa Airlines and a number of subsidiaries – said in a press release on Friday that its bottom line fell on the back of lower ticket revenues, especially for travel to Asia.
In the second quarter, Lufthansa Airlines made a profit of only €213 million ($232 million), down from €515 million in the same period last year, the company announced in Frankfurt.
The airline now has a loss of €427 million on its books for the first half of 2024. At the same stage in the previous year, it recorded a profit of €149 million.
The reasons given for the poor results were falling ticket revenues, inefficiencies and the slow delivery of new aircraft.
By contrast, the group’s other passenger airlines, as well as Lufthansa Technik and Lufthansa Cargo, are expected to match the previous year’s results.
For the year as a whole, the Lufthansa Group is now expecting an operating profit of between €1.4-1.8 billion, having previously given a target of around €2.2 billion.
In the second quarter, the group’s adjusted earnings before interest and tax totalled €686 million, down from €1.1 billion in the same period last year.
A savings programme has been launched at the core Lufthansa brand.
“It is becoming increasingly challenging for Lufthansa Airlines to break even for the full year,” the company said.
